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Office of the Mayor 


2 p.m. Monday October 17 1983 


FEB 2 9 1984 

pil«l.l^ ' IBRAPY 

A great many years ago, Aristotle wrote that people come together in cities in 
order to live, and they remain together in order to live the good Life. 

San Francisco, in 1983, is proving him right. 

Today, for the fifth year, I come before you to report the State of the City. This 
year's message contains some remarkably good news for San Francisco. Once 
again, I believe it indicates the operations of this City's civic structure are 
increasingly productive and effective. 

I begin with a heartfelt thank you. Nothing can be accomplished in our City 
without a close working relationship between the Mayor and Board of Supervisors. 
In the past five years our relationship has grown, and I intend to do all I can to 
keep open the doors of helpful and mutually beneficial cooperation. 

San Francisco's economy is exceedingly healthy. By several indicators, we appear 
to be better off than any California city and quite possibly any major municipality 
in the United States. 

This year's budget surplus is now running $49. 5 million, with an additional $25.(5 
million expected in state apportionments. In addition, substantial reserves are set 
aside for other needs and contingencies. I am confident we will balance next 
year's budget with no tax increases, no cuts in services and no layoffs. 

Despite such optimism, it is not time to reduce revenues. I would like to propose 
tax cuts — but 1 will do so only when tax cuts will not endanger the City's fiscal 

We required $89 million of our surplus to balance the 1983-84 budget, $51 million 
for the operating budget, the rest for the City's infrastructure. We must 
anticipate at least $100 million, including $50 million for Salary Standardization, 
to balance the 1984-85 budget. The surplus fluctuates, and economic changes 
may reduce our ability to generate future revenues. It is imperative that we 
protect the existing surplus. 

I will veto any measure to reduce revenues at this time. 

3 1223 03273 0179 


San Francisco's private sector economy is also robust. With retail sales declining 
across the state, the Cit., 's rose 2% in the first quarter of 1983, according to 
Security Pacific Bank. A 3% rise is expected this year and 5% in 1984. San 
Francisco's unemployment rate — now 8.9%, down from 9.8 a year ago — remains 
below the state's and nation's. 

But our economic well-being is only the beginning. It pleases me greatly to be 
able to report later in this message significant progress in three of my highest 
priorities for our City: jobs, housing and parking. 

But let me now discuss the truly exciting array of major civic projects and 
programs that lie in our city's future. Each represents a substantial improvement 
for San Francisco — boosting its economy, its employment and its image. 

A Downtown Stadium: A year ago, I reported we were evaluating the possibility 
of a new downtown stadium. Now, after almost two years of study, a 70,000-seat 
domed stadium on the waterfront near downtown has become a real possibility. 

A task force of experts has concluded that a truly first-class, all-sports, 
multi-purpose stadium with full-time, year-round uses can be built more 
cost -effectively than rehabilitating and doming Candlestick Park. 

Just as significantly, the stadium could be built "largely with private money — while 
taxpayers would have to bear the full burden of rebuilding Candlestick. 

A Chamber of Commerce task force has pledged its help in exploring funding 
possibilities. Putting this massive project together will take time and tenacity. It 
will require working closely with the Board of Supervisors and keeping the public 
fully informed every step of the way. 

A new stadium can be built only if the people vote their approval. I believe it is 
essential to maintaining our status as a major league sports city. 1 am also 
convinced a downtown stadium is logical, that it can be built and should be built. 

Yerba Buena Center: A longtime civic dream is destined to come true in the next 
half -decade: a billion-dollar development in the heart of San Francisco's 
downtown. We expect an agreement in the next 30 to 60 days. 

Yerba Buena Center's three-blocks and 27 acres of modern cityscape will connect 
Market Street and the Moscone Convention Center. It will feature another large 
hotel, offices, apartments and wonderfully varied entertainments — all within a 
green and gracious park setting. 

This gigantic development in our most vital commercial area will give a great new 
dimension to working and shopping in downtown San Francisco. 



126 SFPL 09/26/03 



Housing Developments: Significant relief may be on the way for San Francisco's 
most acute problem: housing. 

Large developments are in the planning stage, most of them South of Market: 
South Beach with 1,500 units of housing, Rincon Hill with up to 3,000 units and 
Southern Pacific's 195-acre "city-within-the-City" Mission Bay — with possibly 
7,000 homes. In addition, implementation of the Van Ness Avenue plan could 
produce more than 1,000 dwellings on an elegant boulevard. And if Candlestick 
Park were sold, the area could provide up to 3,000 dwelling units and neighborhood 
office and retail uses. 

Numerous more modest projects are already miderway. Example: next month 
ground will be broken for 120 mixed-income town houses in the eight-acre, $10 
million Wisconsin Street Project on Potrero Hill — one and two bedroom homes 
priced from $70,000 to $114,000. 

In this highest -of-all housing market, developing affordable homes is terribly 
difficult. But we have pioneered new ways to help. 

Our Office Housing Production Program — now being considered by New York, 
Washington, Boston and Seattle — has already produced $19 million and 2,500 new 
or rehabilitated homes. Within the next few weeks we will be sending you an 
ordinance setting overall regulations for this program and establishing it 
permanently. Our $60 million mortgage revenue bond issue has provided reduced 
loans for 120 buyers and will do so for another 500. More than 1,200 rental units 
in the Tenderloin are being rehabilitated for low-income people. And interest 
from the $10 million Affordable Housing Fund will help developers produce 
lower-priced rental units. 

I will be meeting regularly with non-profit developers and neighborhood leaders, 
to see what the City can do to generate even more affordable housing. Meantime, 
we are begiiuiing to see some light at the end of the housing tunnel. 

The Downtown Plan: For the first time in 17 years, we now have a comprehensive 
proposal to revamp policies and regulations for downtown development. The goal 
is to preserve those qualities we treasure about San Francisco while maintaining 
the vigor of its economy. 

The product of more than two and a half years of solid effort, the plan will guide 
growth and development in our city through the end of the century. 

It sets specific limits on height and bulk, requiring smaller, more slender 
buidlings. Additionally, the plan creates incentives for new housing; establishes 
five conservation districts for geographic areas of unique quality — such as the 
retail complex around Union Square — and designates 266 historic buildings for 


Furthermore, the plan provides for more open space, a public arts program and 
improved transportation. 

This plan is a bold step into the future. The New York Times has credited it with 
putting San Francisco "at the forefront of American city planning and urban 
design efforts." 1 wholeheartedly agree. 

Twin Peaks Reautification: Announced a few weeks ago, this program seems 
likely to please anyone who has ever enjoyed the wondrous views from our beloved 
Twin Peaks but deplored their neglect and lack of facilities. 

We are moving ahead with an extensive Twin Peaks beautification program that 
will include tliree inviting viewing areas, a broad stone walkway, new landscaping 
and parking areas. 

Soon the twin gem that rises in the heart of San Francisco will have the beautiful 
setting it deserves. Our civic thanks go to the vigorous task force I appointed 
early this year, whose community members quickly came forward with the plans 
we have now begun to implement. 

Jobs for the City's Young: With youth unemployment running almost 30 percent, 
San Francisco has launched two programs designed to give young people jobs now 
that will prepare them to compete in the job market. 

This will soon become the nation's first city with its own youth conservation 
corps, in which 200 deserving young people each year learn skills and work 
disciplines while beautifying our city with a wide variety of useful projects. 

I am pleased to announce that Robert J. Burkhardt Jr. — who has been chief deputy 
director of the California Conservation Corps and now presides over its Bay Area 
center on Treasure Island — will direct the San Francisco Corps starting in January. 

Bob is a dynamic San Franciscan with seven years in this field. He has many ideas 
for making the Corps a boon for our city and a model for others — and will start 
recruiting upon taking over the job. . 

In addition, I will send you shortly a $600,000 supplemental appropriation to 
provide jobs during this school year for 500 young people in City, state and federal 
offices and 79 non-profit organizations. 

Working for the minimum wage under supervision that helps them develop good 
work habits, these youngsters will learn office, business, craft and social skills. 
They will also learn to work with others as they develop self-esteem doing 
worthwhile jobs. 


This program was formerly federally funded by CETA — the Comprehensive 
Employment Training Act. I proposed and you approved $375,000 for last spring's 
program. This new money will carry it until June of 1984. This is a one-time 
commitment, but if the program succeeds we will look for other means of support. 

The year 1984 will be a historic one in San Francisco for another reason: the 
Democratic National Convention at Moscone Convention Center. Eyes of the 
world will focus on us during those weeks, and we are pledged to help the 
Democrats produce their best convention ever. 

Next July there'll also be the All Star Game at Candlestick Park and, in January 
1985, the SuperBowl! The big football event will be in Stanford Stadium, but most 
of the many thousands of fans will stay in our city. Again, the eyes of the world 
will be on San Francisco — this time the sports world. 

Back to the present, let me talk about San Francisco today, and the notable 
accomplishments of some of this City's major departments. Behind the fiscal 
stability cited earlier are increased efficiencies and more cost-effective systems 
developed in many departments. 

Bearing witness to this, in July our city won — for the first time — the Certificate 
of Conformance of the Municipal Finance Officers Association. This coveted 
award is given in recognition of high reporting standards for governmental 
agencies, and our Controller's Office deserves congratulations. 

This kind of efficiency is giving taxpayers more for their tax dollars, here and now. 

Let me cite a dramatic example: The Treasurer reports San Francisco's 1982-83 
investments yielded 13.20% — highest of any of California's 58 comities. That 
smart investing earned $105 million, meaning the public's money made additional 
dollars for San Francisco. And tax collections rose $31 million — 6% higher than 
last year's. 

San Francisco's well-being is far deeper than dollars. Looking more closely at the 
major departments will help to illustrate. 

Crime And Fires — Both Down: The Chief of Police recently reported to me that 
violent crimes in our city fell 10.7% in the first eight months of this year — after a 
similar drop last year. Our violent crime decline in the first six months of this 
year was the greatest drop of California's seven largest cities. 

Overall crime was down 5% last year and is down 8.2% to date this year. 


The lowered crime rate is, I believe, the direct result of targetted enforcement 
efforts, vigorous neighborhood cooperation and the fact that we now have more 
police officers out walking beats. 

A few weeks ago the Police Department unveiled a computer dispatch system that 
will make further cuts in response time, which is now 2.5 minutes for priority 
calls. Fully operational by the end of this year, the computer-assisted dispatch 
gives our police the most sophisticated crime-fighting system operating in any 
California city. It will, I believe, bring us to the 2 minute response time which 
has been my goal. Additionally, when a person calls "91 1" a name and address will 
flash before the dispatcher without a word being spoken. 

The police will also be aided by a fingerprint computer capable of matching latent 
crime scene prints in a fraction of the time now required, and with greater 
accuracy. This system will be operational by spring of 1984. 

Last November, the people of San Francisco voted to establish an Office of 
Citizen Complaint. In June, the Police Commmission hired a well-known 
UC-Stanford teacher and attorney, Eugene Swan, as director. Today, after a 
scant four months, the office went into operation with nine investigators on the 
job. Full operation is scheduled by the end of the year. 

We can all take pride in the job the police are doing. Simultaneous visits of the 
Queen of England and the President of the United States and half the Cabinet last 
February put the police to a test. But the visits went off without incident or 
complaint, and won praise from the Queen and President. That fine police 
performance was a tribute to the additional crowd control training provided 
following the Super Bowl happenings. 

Another test will come next July, with the Democratic Convention. San 
Francisco's Finest are working closely with the FBI, the Secret Service, the 
California Highway Patrol and the Sheriff to make sure delegates, candidates, the 
press and all other visitors are secure. 

The Fire Department can also point with pride to its performance: In the last 
year, arson fires have been reduced 15% and building fires 10%. As a result, 
property losses due to fires were cut $5.5 million. The firefighters met their 
performance objective of a citywide response time of three minutes — and fires 
were limited to the floors of origin in 90% of all fires. I expect our citywide fire 
response time to be reduced even further this fiscal year. 

While fighting fires is top priority, the Fire Department has also expanded its 
capabilities for dealing with a growing danger in our society: hazardous and toxic 


Public Health — Increased Services: Consolidating and coordinating to increase 
services and decrease costs have increasingly occupied the Department of Public 
Health as the City takes on medical burdens previously funded by the State. 

The public; health emergency represented by AIDS — Acquired Immune Deficiency 
Syndrome — is a priority of the highest order. Both inpatient and outpatient 
clinics are now in operation at San Francisco General Hospital. Counseling for 
the ill and "the worried well," screening, education and public information 
programs are part of the extensive program — which includes an AIDS Activity 
Office set up to coordinate services and research. 

This administration will continue to do all we can for AIDS victims — and no one 
should think otherwise. Money will continue to be made available for worthwhile 
and necessary programs. 

San Francisco General medical units expect a 10% increase in the patient load and 
35% increase in surgeries. The shift from State to County provision of health 
care for Medically Indigent Adults has resulted in 25% more MIA inpatients and 
15% more outpatients at San Francisco General Hospital. SFGH also reports 
increases in child and infant patients due to changes in MediCal funding and 

Several important new Public Health services are now offered: 1) An Office of 
Senior Services, to consolidate and administer the numerous programs for the 
elderly; 2) at Laguna Honda, respite care up to 30 days for families of chronically 
ill patients, and 3) at San Francisco General, a hospice program as an expansion of 
its cancer services. 

Responding to such crises as the PCB spills, DPH's Environmental Health Program 
now monitors the purchase, storage, use and disposal of all hazardous materials 
within the City. 

The Homeless — Problems and Progress: San Francisco led the nation in a 
compassionate effort to shelter victims of the recession last winter. Guided by a 
task force of the Mayor's Office, Department of Social Services, church leaders 
and community groups, the program found beds and meals more than 200,000 
times for those in need. 

Despite confusion, uncertainties and unforseen problems, up to 1,200 persons a 
night were given beds and food. 

In May, a more permanent plan was put into effect, integrating the homeless into 
General Assistance and reducing the shelter need to less than 400 a night. Its aim 
is to prevent double dipping — a problem we found in at least 30% of the cases. 
This remains a problem. 


Our program for the homeless remains the only one in the Bay Area today. 
Unfortunately, other Counties and cities have not come forward with programs. 
It is becoming clear that San Francisco can not — and should not — accept the 
burdens of others or we risk becoming a magnet for homeless from everywhere. I 
am writing to all Bay Area counties urging them once again to join in providing 
for the homeless. I ask your support in this effort. 

The Revitalized Port: Last week I asked the Port Commission to name Gene 
Gartland the new Port Director. In his two years as president of the Commission, 
Gene has brought new life to the Port, and shipping and ship repair are now 
prospering after years of stagnation. He has pledged to be unrelenting in the 
pursuit of more Port business. 

As the Embarcadero is brightened up through a long-needed beautification 
program, the Port's whole future is brightening, too. Each year* its earnings have 
increased, and this year's net is up 10 percent to $G million. 

Maritime business climbed even more — with a 24% increase in container cargo, a 
15% increase in passenger traffic at Pier 35, and more ship repair business. 

The coming year will see construction begin on the Fisherman's Wharf 
breakwater. San Francisco has waited too long for this project to reduce wave 
damage to the wharf area and the fishing fleet. We are still hopeful of federal 
funding, but the breakwater will be built — whether or not federal support is 

The Port has other exciting plans. Pier 45 is to be developed into a mixed-use 
facility that includes retail shops, a small hotel and up to 550 housing units — for 
which developer interest will be sought early in 1984. At Pier 7, the Port and 
Recreation and Park Department are working toward an open space area — with a 
promenade and fishing pier all can enjoy by 1985. 

The Water Department: Our Public Utilities Commission is taking steps to 
improve the already-high quality of the City's drinking water. A contract was 
signed recently with a national engineering firm to review all procedures in 
watershed management and water quality control. Depending on the findings, the 
PUC will decide whether to build a filtration plant for the Crystal Springs 

Meantime, the Hetch Hetchy system is becoming more important as a source of 
City revenues — this year providing $31.5 million for the General Fund. And the 
PUC is negotiating power purchase contracts which could bring in vast new 
revenues for the City. 


Progress in the Parks: Rec & Park completed Sgt. John Macaulay Park at Larkin 
and O'Farrell Streets this year and Little Hollywood at Lathrop and Tocoloma. 
Several more neighborhood parks are on the way — plus extensive renovation of 

In addition, 18 neighborhood parks, athletic fields and squares have been 
renovated this year. 

Also close to completion is the huge Mission District facility at 2450 Harrison, the 
City's largest, with 36,000 square feet for a gymnasium and community center. 
Two thirds of it will be finished next month, the rest within a year. 

In Golden Gate Park, the historic Sharon Building will soon be restored as a 
citywide arts and crafts center, the wonderful old Carousel should be rolling again 
in January, and Huntington Falls will soon again send its sparkling waters into 
Stow Lake. 

The Zoo is breaking attendance records with a new baby polar bear and the two 
snow leopards from China. Koalas will join the Zoo family next year as gifts from 
our sister city in Sydney, Australia. The Zoo has also broken ground for its fine 
new primate center, after renovating the lion grottos. 

The Muni: Persistent Troubles: The Muni remains our most troubled City 
service — with the recent reports of accidents, diesel bus problems, Metro failures 
and unreliability. 

I am determined these problems will be met, and I intend to work with the new 
PUC leadership — insisting on the toughest and most vigilant management to meet 
Muni's need for safe and dependable service. Our driver training program will be 
strengthened, and I am committed to implementing the other important 
recommendations of the recent Accident Peer Group Review panel in hiring, 
training, incentive-motivational programs and discipline procedures. 

This year will see first deliveries of 180 new diesel buses, with 100 articulated 
vehicles following in 1985-86. Meanwhile, 50 old buses have been rebuilt like new 
and another 90 are on the way. The diesel debacle of two years ago must never 
happen again. We continue to miss some runs due to lack of available diesels, but 
the crisis is over. 

Thirty new Metro cars have been ordered, 16 of which are already available for 
use. They will be used to increase reliablility and to relieve the peak-hour crush. 
Others are being retrofitted to eliminate brake and door problems. Muni will 
announce later this week a separate management for the Metro system. 

Meanwhile, our massive cable car rehabilitation is moving along right on track. 
Look for a glorious reopening next June, in time for a big summer season. 


The Airport — Safe Flying: For five consecutive years, San Francisco International 
has been awarded the Aviation Safety Institute Award as one of the safest 
airports in the country. 

SFO is highly solvent, too. Concession revenues jumped 11 percent to $38 million 
as 1 1 shops or services opened. And passengers gave the airport a 3.87 
rating — ever closer to its 4.0 goal. 

The $100 million modernization of the Central Terminal into the world's finest 
international air terminal was finished last July — on time and within budget. 
Next month, modernization will begin on the South Terminal — an even bigger job, 
due for completion in 1987. 

Our Schools Are High Achievers: The San Francisco Unified School District is the 
only large urban district in California with a continuing pattern of higher 
enrollments, expanded programs and higher student achievements. 

We can be truly proud of San Francisco's children. Elementary schools have 
increased test scores in the California Assessment Program for four straight 
years, and middle and high schools have climbed well above national averages. 

Illustration One: Two years ago the district's third graders were one point above 
state averages in reading, two points above in written language and 13 points 
above in math. Now, they are 25 points above in reading, 20 points above in 
writing and 42 points above in math! 

Illustration two: Statewide, ten percent of middle and high school students test at 
or above 90 percent in basic skills. In San Francisco seven grades — grade 6 to 
12 — now exceed the state averages with 13% to 19% of the students getting above 
the 90th percentile. 

Students must share congratulations with their teachers — who are doing well, 
too. The School District has concentrated on teaching teachers, with a five year 
program of workshops and training programs in oral and written language, math 
and computers. 

The City has been able to help the School District financially, with a $4.1 million 
program in 1982-83 and a proposed $3 million purchase of certain school sites 
with clouded titles in the current budget. 

The Public Library — Reading Is Up: The last year has seen dramatic increases in 
use of the Main Library and its seven new superbranches, now that all are open 
seven days a week. 

Overall loans of books, records and tapes rose 7% to 2.6 million items. The 
Chinatown branch is up 19%, Excelsior 16% and Mission 17%. 

Computerization of all library facilities is moving rapidly—with the main library 
and five large branches using computerized circulation. 

11 / 

Increasingly popular with large and small businesses, college students and 
non-profit organizations is the new computer-assisted reference service — which 
feeds off 100 data bases. And coin-operated personal computers are now 
available at the main library and the Chinatown Branch, with the other six 
superbranches due to get them. 

Convention Gains: The Chief Administrative Officer is busy planning for next 
July's big Democratic National Convention, but meanwhile the City's 
conventional popularity is rising, too. 

Moscone Center is operating at 92% of capacity — with more than 620,000 people 
attending events there. Civic Auditorium / Brooks Hall is up, too, with 580,000 
using the hall during 197 event days. 

The CAO also reports gains in his solid waste management program, which aims at 
recycling 25% of San Francisco's garbage, finding landfill for 20 years and 
developing a waste-to-energy plant. 

With the Mountain View landfill contract expiring this month, the City's garbage 
will be going to Alameda County until 1988, then to Solano County for five years. 
New recyling facilities have been set up around the City. And Combustion 
Engineering was selected to lead development of a waste-to-energy project for 
the City. 

Parking — Fighting the Crunch: Parking is at a crisis stage in San Francisco, and I 
am determined to take whatever steps are necessary to increase parking and 
parking convenience. In the immediate future, I propose these two actions: 

1) Establishing a Parking Task Force of residents and merchants to help seek 
citywide solutions. I will name three members from downtown, three 
neighborhood merchants and three neighborhood residents. 

2) Hiring an experienced outside consultant to review traffic management in 
San Francisco. 

I make the latter recommendation because traffic management in our city now 
involves at least eleven agencies. Authority is so divided as to make effective 
control exceedingly cumbersome if not impossible. I hope the Board will support 
this proposal. 

I have criticized the otherwise-excellent Downtown Plan for not adequately 
addressing short-term parking needs — and the Downtown crunch is shared by 
many neighborhood shopping areas. 

We have made some gains. In the last year, the Parking Authority has opened or 
started construction on 920 new off-street spaces in five neighborhood and 
downtown facilities. The Moscone Garage is now under construction with 730 
spaces. The Yerba Buena School site on Lombard Street is being planned for 200 
stalls along with commercial ground floor space. 


Four other neighborhood sites are in the planning stage and at least six others will 
be developed. 

Redevelopment — Building and Rehab: During 1983, more than $300 million in new 
construction and rehabilitation has taken place in San Francisco redevelopment 

The $60 million Meridien Hotel, the $100 million Fillmore Center with its 
top-of-the-line Safeway, the $24 million Northridge Homes in the new Hunters 
Point, the $16 million Golden Gateway Commons are highlights — and dozens of 
smaller projects are underway. 

Already finished this year: the $40 million General Mail Facility in India Basin; 
the 12-story $25 million Convention Plaza building at Third and Howard Streets; 
the $5.3 million Performing Arts Garage; Woolf House II at Fourth and Howard 
with 70 affordable units for seniors and 20 units for the elderly at the Kimochi 
facility at Sutter and Laguna. 

Redevelopment is in charge of the aforementioned Yerba Buena Center, of 
course — as well as the 400-apartment St. Francis Plaza across the street. And 
the agency promises to start a small boat marina south of the Bay Bridge this fall. 

Public Works — On the Job: As one who travels many miles of San Francisco 
streets every day, I happily report the Department of Public Works this year fixed 
23,000 potholes— 13,000 more than last year. 

Street cleaning and landscaping have also been substantially increased — while 
complaints about street cleaning actually fell 15 percent. And despite salary 
increases, the labor cost per street-cleaning mile was cut a remarkable 24% 
through mechanization. 

What many will regard as the department's most singular achievement is in 
speeding up permit processing and building plans. 

This cumbersome function has been a persistent problem here and elsewhere to 
home owners, contractors and developers. Now, San Francisco's experts check 
83% of all building plans within 18 days, process 88% of repair and alteration 
permits within 21 days and 72% of the permits for new building within 35 days. 
This has been a priority of mine and I am especially proud of DPW's performance. 

Private construction, which exceeded $1 billion here for the first time last year, 
did it again this year — and that too has kept DPW busy. 

The department is on schedule and on budget with the $20 million program to 
rebuild streets, sidewalks, parks, plazas and public buildings begun last year, and 
is setting priorities for the $25 million infrastructure reserve voted earlier this 


Building inspectors have foeussed attention on assuring adequate heat and hot 
water in residential hotels, citing 25 of them for violations. Under the tough new 
ordinance we put through this year, every residential hotel will be inspected for 
compliance each fall. 

The Clean Water Program put its Bayside core system into service this year, with 
31 billion gallons of dry weather flow a year getting secondary treatment at the 
Southeast Plant. On seven adjacent acres, construction starts by next summer on 
the Southeast Community Facility — with job skills, senior and childcare centers 
along with a greenhouse. 

Ahout 750 people — each working one day per week — are cleaning streets ttirough 
the Workfare Program started this year, in which the Department of Social 
Services and DPW find work for welfare recipients. Social Services reports more 
than 200,000 hours of public service were provided through Workfare; this coming 
year it will be expanded to other deparments. 

This long and detailed report covers only highspots, but I hope it has helped to 
illustrate the panoply of progress I believe we are seeing in San Francisco. 

As I noted earlier, that progress is the result of hard work and dedication by many 
thousands of City employees, managers and department heads diligently doing 
their jobs. It is also the result of close communication and cooperation between 
the Mayor's Office, the Commissions and your Honorable Board — for which I again 
thank you. 

The people of San Francisco can be sure their City is in good financial health. It 
is equally important that their government itself is in good health — serving them 
more efficiently, meeting today's problems and planning for tomorrow's. 

Thank you. 




j& zsa-14 




or Dianne Feinstein 

* * * 

October 9 1984 


SEP - 6 20G0 



Office of the Mayor //f/ >*swTTmer m Dianne Feinstein 


Tuesday, October 9, 1984 

State of the City Address 

This is my sixth State of the city message, and [ am pleased to report that 1984 has been 
a good year for San Francisco. 

Preparing this message, I realized this city we all love has reached a new plateau of 
progress. After several years of focusing on its high-priority needs, San Francisco 
emerges today as a community in full command of its destiny. 

1 believe we are a city on the move. We are a team, cognizant of our problems and 
working towards surmoiuiting them. We :u'e fully capable of shaping our future in ways 
that improve the community and the lives of those who live and work here. 

I thank your honorable Board for its unstinting support and cooperation in the past year. 
Thanks also to City employees, and to the good citizens of San Francisco whose help is 
essential to all we do. 

Let me make certain announcements and cite some current activities, highlights and 
accomplishments of the past year: 

I ) We have achieved an imprecedented fiscal stability. We have not only balanced the 
budget, we are expanding services while cutting some taxes, fees and fares. 

We closed fiscal 1983-84 with a S141 million surplus, $104 million of which was 
immediately needed to balance the 1984-85 budget. Our Taxpayer's Dividend package 
included the following: 

S8.5 million to defer an anticipated Sewer Service charge increase 
S2.7 million to lower Muni fast-passes from S24 to S2Q 
S7.5 million to reduce Payroll and Gross Receipts Tax 
S2.5 million to avoid admission fee increases to City facilities 
S2.3 million for reallocation of the Hotel Tax 
- —Controller's figures 

In addition, we are putting S20.7 million in reserve for a third infrastructure package. 

Expenditures and revenues remain lopsided. We can no_t balance our budget and continue 
our present level of services without utilizing some surplus each year. This will remain a 
constant factor in the forseeable future. Hence 1 must once again warn your Honorable 
Board that any future reductions in revenue this year will face my veto. 

Page two 

2) Today I am announcing that I will be sending the Board a supplemental appropriation 
to fund the Larkin Street Youth Center for the remainder of the fiscal year. A portion 
of this money will come from the Mayor's Fund for the Homeless. The project will be 
monitored and supervised by the Mayor's Criminal Justice Council. 

It is clear that homeless young people remain a real problem in San Francisco and that 
the Youth Center has been an important source of advice and counseling for many that 
has resulted in them being returned to their homes and families. I hope the Board will 
support this appropriation. 

3) Today I am aimouncing that this past year the Port of San Francisco has increased 
earnings by 36% and shown a net profit of S8.7 million. With passage of the S42.5 million 
revenue bond in November we can create the most efficient container facilities in the 
United States. 

4) Today I am announcing the formation of a Save the Giants Committee of civic, 
business, community and labor leaders to work with me to keep the Giants in San 
Francisco. Additionally, we ;ire exploring the costs and desirability of improving 
Candlestick Park for football and increasing its capacity to 70,000 seats, while building a 
smaller open-air baseball stadium close to downtown. 

A. smaller stadium would have lower height, bulk, parking needs and costs. 1 caution that 
I am making no recommendations at this time, but merely exploring costs and public 
support for such an idea. 

5) Negotiations with Olympia and York have been concluded with ;ui agreement to build 
the SI billion Yerba Buena Gardens After years of delays, construction should finally 
begin early next year. 

6) The City's economy remains robust. Our number one industry, tourism, is improving. 
The Convention & Visitors Bureau expects to finish 1984 with a 3% increase, ;uid reports 
the convention year is winding up strong. In the most recent quarter, retail sales in the 
City were up L0.9% over last year — an unprecedented increase in m.y years as Mayor. 
City unemployment, 7.4% in August, was slightly below California's (7.6%) and the 
nation's (7.5%). 

7) I have made a strong bid to bring the USS Missouri and its Surface Action Group of 
five ships to San Francisco. This could mean a $125 million payroll, S'JO to S30 million in 
ship repair and an estimated 300 to 500 jobs. S;m Francisco's chances look good. 

8) Today 1 am announcing that we have set the Parking Authority's goal this year of 
beginning to develop ten new parking facilities — particularly in neighborhood retail 
areas. In the Jast fiscal year, more off-street parking — l,5&7 spaces — were added 
than in any year of the Parking Authority's history. And the Authority is now seeking 
property in four neighborhoods which could mean another 1,000 spaces. 

9) I am proud that San Francisco has established the nation's first urban conservation 
corps, and it is performing well. All over town, you are seeing those yellow hard hats 
and blue shirts doing so many necessary jobs. And 200 otherwise jobless young people are 
earning while learning the disciplines of the work ethic. 

Page three 

10) The significance of our successful conclusion of negotiations with the Modesto and 
Turlock Irrigation Districts for the sale of Hetch Hetchy power cannot he 
over-estimated. The price of 36.25 mills per kilowatt hour was a compromise, but one 
which we anticipate will bring San Francisco more than $1 billion in revenue over the life 
of the 30-year contract. This action is the most significant revenue-generating move in 
the history of our city. By running those departments like businesses that should be run 
like businesses we are protecting future services in areas like police, health and libraries 
for ourselves and our children. 

11) We have completed, on time and on budget, the massive, S60 million cable car 
rehabilitation, and our greatest landmark and people mover is back on track. 

12) The 14-year saga of the International Hotel has come to a happy ending — with a 
public-private partnership for 140 units of low-rent housing for the elderly, retail and 
office uses. This pace-setting agreement, utilizing SI. 5 million in federal Commiuiity 
Development money to lower rentals and increase the number of apartments, will bring 
the first infusion of affordable housing to Chinatown in recent years. 

13) In July, San Francisco hosted the Democratic National Convention. Seasoned 
observers rated it the most successful in history. Department heads, staffs and 
thousands of volunteers pulled together to show 30,000 people a civic welcome so 
positive that San Francisco received congratulations literally from all over the world. 

14) One last announcement: On October 29, our Zoo will host the greatest attraction in 
the zoo world today, two three-year-old giant pandas from China. On loan from the 
Beijing Zoo, they will stay through November — another happy byproduct of our close 
ties with the People's Republic of China. 

As indicated, our fiscal stability is at its strongest point since passage of Proposition 13. 
In addition to sending you this year's budget with increased services and 
recommendations for tax, fee and fare cuts, I am able to assure \ou we can fund the 
present level of services next year and complete a third infrastructure package that will 
rehabilitate police stations, restore Kezar Stadium, improve the Beach Chalet, provide 
new mental health facilities and expand Golden Gate Park's equestrian facilities. 

When [ was inaugurated this past January, I outlined four priorities for the immediate 
future. I will now report briefly on the progress in each of them. 

Priority One — Affordable Housing: In 1981, I announced a six-point strategy to 
increase the supply of housing in San Francisco, followed by the Mortgage Revenue Bond 
Program, Office Housing Production Program and the Affordable Housing Fund in a drive 
to increase the number of housing units throughout our city. 

Page four 

Since that time the housing market nationwide has deteriorated dismally, and virtually 
all federal dollars and programs to help provide housing for the poor have been 
eliminated or drastically curtailed. 

Although we have tried to meet cutbacks with local innovation, cutting red tape and 
fast-tracking of housing wherever possible, it has become evident we must concentrate 
on bringing large numbers of units on line if we are to make substantial progress. 

To this end, the following have been achieved: 

1 — 2,000 low and moderate units have been completed or begun and another 2,000 
rehabilitated through the Office Housing Production Program. 

(These include 300 Section 8 market rate homes at Hmiter's Point, the conversion of the 
Pink Palace to senior housing scheduled to be opened in November as the Rosa Parks 
Apartments, the rehabilitation of 450 units of vacant and vandalized public housing, the 
Herald Hotel (73 units), the Aspen Tenderloin Projects (82 units), McAllister Towers (382 
units), 441 Ellis Street (81 imits), and So million to a Mortgage Revenue Bond shared 
appreciation pool (650 units). 

Rezoning has, or will, create the potential for 23,000 more units in the future (Mission 
Bay, Van Ness Avenue, Rincon Hill). 

2 — Two issues of Mortgage Revenue Bonds totalling 870 units plus an S8 million bond 
issue for 700 home improvement loans are underway. 

3 — I have instructed the Redevelopment Agency that housing is to be chosen above 
commercial construction in all cases where there is a choice. 

4 — Discussions for the largest in-town community in history have been c-ompleted with 
Sante Fe Southern Pacific for Mission Bay. These discussions resulted in my 
recommendation of a plan which will be reviewed by the Planning ( 'ommission and your 
Honorable Board. The recommendations will include: 

7,577 dwelling luiits 
30% at less-than market costs 

SI. 5 million a year in tax revenues generated to be devoted to 
reducing prices for 15% of housing. 

5 — Smaller projects, such as Wisconsin Street (120 units priced S70.000 to SI 14,000), 
the International Hotel (140 units at S225 a month), St. Francis Place (400 rental units at 
S500 to S1,000 a month), the Farragnt School site (42 units at 570,000 to 590,000), 
Amancio Ergina Village (72 units at 570,000 to 5100,000) are in process. 

6 — The first -non-subsidized homes in Himter's Point history — 90 of them — have been 
built and are selling for 5120,000 to 5150,000. 

7 — Low income units, such as Mercy Terrace (158 units), Mariposa Gardens (63 units), 
Ceatrice Polite (95 units), Casa de la Raza (51 units), and Dunleavy Plaza (48 units) have 
closed this past year. 

Yes, we still have a housing crisis of major proportions. But setting new policies and 
moving in new directions are paying dividends and increasing our supply of this most vital 

Page five 

Priority Two — Transit: Major achievements have heen made in reliability and vehicle 
acquisition in the last year. 

1) Fighting back from its diesel debacle only a few years ago, our transit system 
has made great strides — reducing runs missed because of vehicle unavailability 
from 150 daily then down to zero today. 

2) With 180 new buses, 150 totally rehabilitated buses, 100 new articulated 
vehicles, 30 new Metro cars and a fully renewed cable car system, there has been 
a major infusion of new vehicles. 

3) A new supervisory team is on board throughout the system — in maintenance, 
training and operations. 

4) Passenger complaints have dropped 30% as availability and reliability gain. A 
sampling of ten major Mutii lines showed 85% of vehicles arrived no more than a 
minute early or three minutes late. However, we have recently been plagued by 
electrical problems on the Metro system. 

5) A new diesel yard was opened in June on Army Street, and plans are moving for 
a permanent facility at 16th & Harrison. 

6) Muni has made solid advances in management, discipline, safety, training and 
security this past year. Last July Muni won an American Public Transit 
Association award for reducing accidents. The diesel bus accident rate has 
dropped to 95 per million miles — down from 104 per million miles. And more 
than 800 drivers have completed two years of safe driving. 

Priority Ttiree — Jobs: In the past year, City financing programs have helped create or 
retain close to 1,500 jobs — most for low ;uid moderate income San Francisco residents. 

These included the retention of the Hills Brothers coffee plant, which is moving to 
Potrero Hill from its current downtown location — thereby saving 150 jobs and creating 
150 more, ;uid the $21 million renovation of the vacant Hamm's Brewery, which created 
more than 650 jobs. In addition, more than 400 blue collar jobs were created by the 
renovation of a vacant warehouse at 1900 Bryant Street and City small business 
assistance prevented the relocation of the California Printing Company, saving 150 jobs. 

These are a few projects in the City's effort to retain and attract blue collar and 
low-wage jobs which through a hiring agreement with the Private Industry Council gives 
job priority to low and middle income San Francisco residents. 

Ship repair remains a strong potential source of new blue collar craft jobs in our city. 
We are vigorously pursuing new work. It is a pleasure to note that two weeks ago, 
Continental Maritime of San Francisco won an S18 million contract with the U.S. 
Maritime Administration to convert the SS President Monroe — which promises to bring 
200 shipyard jobs and 300 subcontractor jobs to our city. 

Priority Four — Charter Reform: The Board's failure to place on the November ballot 
this year my comprehensive Civil Service reform package was a disappointment. 

I hope you will reconsider and place a reform package on the next ballot so that the 
people are given a chance to vote on this critical issue. We cannot continue to live with 
an outdated system that stifles innovation, inhibits opportunity and binds us to an 
impossible slow pace in personnel management. 

Page six 

I am announcing today that dealing with mental health problems is a major priority. As a 
nation, and as a society, we are witnessing a human tragedy of vast proportions. And it 
has come to San Francisco. 

1 am talking about the mentally ill, particularly the mentally ill who roam our streets, 
often in a psychotic state. The number of mentally ill in the streets of San Francisco are 
now reaching the point where they are overwhelming available facilities. Additionally, 
we know: 

— That the mentally ill are committing a disturbing number of violent crimes, 
with 500 criminal defendants hospitalized here this year. 

— That our homeless shelters have become the largest mental health residences 
in our part of the country, with 30 to 40% of the occupants suffering severe 
mental illness. 

— That our police are getting L8,000 calls a year to deal with mentally disturbed 
persons, and in fact handling more cases of mentally disturbed and disruptive 
people than our mental health facilities. 

— That tragically, when all other facilities are full, the best police can often do 
is just to lock them up in the back seat of patrol cars. 

— That 60% of the City's general assistance recipients now are classified as 
disabled with mental health, drug or alcohol problems. 

A real test for civilized society is how it treats the sick and homeless, and these days we 
do not always do well on that score. So once more, San Francisco must take the 
leadership in facing up to a problem that is national in scope. 

I have appointed a task force of City department heads to delve into this urgent problem 
and make recommendations to me. I have asked the task force to quickly identify 
possible sites for a new psychiatric facility, needed urgently to relieve existing facilities, 
which are crowded and ill-equipped for this emergency. 

It should be clear to all concerned that this problem dates back to the closing of state 
institutions, which dumped mental health patients on local communities unprepared and 
unable to deal with them. Just as clearly, the problem is a federal and state 

Federal grants to San Francisco for mental health have been reduced from 56,000,000 six 
years ago to 5250,000, and State money has not kept pace with inflation. Result: San 
Francisco spent S2, 000, 000 local money in 1979, and this year is spending 521,000,000. 
Twenty .years ago there were 37,000 state hospital beds for mental patients, today there 
:ire 5,000. 

I intend to carry the fight to Sacramento and Washington. [ will urge that our 
Sacramento and Washington representatives seek legislation to rectify this national 
tragedy of growing dimension. 

More information and proposals on this difficult subject will come to your Honorable 
Board as it becomes available. As always, I will appreciate your help and cooperation in 
addressing needs as solutions become known. 

Page seven 

Now let's have a more detailed look at certain City departments: 

Planning: New Programs On the Way: The Planning Department has been putting 
together programs for better management of downtown growth, incentives for new 
housing starts, conservation of near-downtown neighborhoods and controls on 
neighborhood retail districts. They will be coming to the Board in the months ahead. 

First among them will be the Downtown Plan, which calls for the toughest zoning of any 
downtown in America. I urge your strong support. This plan is designed to greatly limit 
future growth in the downtown area while allowing smaller and more slender buildings 
South of Market, in a setting of greater open space. 

Planning studies and rezoning programs are underway in four' neighborhoods adjacent to 
downtown: Chinatown, North Beach, Tenderloin and South of Market. The purpose is to 
minimize the impact of downtown activities. These areas contain nearly 26,000 dwelling 
units, many moderate or low-priced rental units that must be given zoning protection. 

Zoning of the City's 240 commercial districts, containing more than 10,000 parcels of 
property, lias not been evaluated in nearly 20 year's. As a result, in recent years 
moratoria on certain activities have been imposed and special districts established on 
certain streets to provide controls over changes in retail uses. A Planning report 
published earlier this year, Neighborhood Commercial Rezoning Study, made many 
recommendations. The Commission is expected to act on them with a new Neighborhood 
Plan in November. 

The Police — Progress and Problems: For the fourth successive year, crime is down. 
The rate was down 5% in 1982, almost 9% last year and about 8% so far this year. We 
have more police officers than ever before, and there is no doubt the vast majority are 
doing a good job. 

But it must be acknowledged right up front that the department has had two incidents 
which reflect badly on it — the Rathskeller party and the Lord Jim's raid. Though just a 
few officers were involved, these incidents reflect unacceptable attitudes and all suffer 
in the public's view. Steps are being taken to see that there are no repeats. 

Weak mid-m;magement remains the Police Department's soft underbelly. The first 49 
permanent new lieutenants in a decade were sworn in just a few weeks ago, but 
appointments to sergeant and assistant inspector are still held up by litigation. 
Additionally, command needs to be strengthened and provided on ail shifts — 24 hours a 
day. The SFPD is not a 9 to 5 department, and r-aptains are responsible for the 
performance of their stations and bureaus 24 hours a day. 

The automated fingerprint identification system which came on line last February has 
been a success story. In its first five months this remarkable piece of equipment made 
360 identifications in criminal cases — more than seven times as many as were done 
manually in all of 1983. Another high-tech addition, computer assisted dispatch, is now 
fully operational, and has speeded up reception, recording and forwarding requests for 
police services. 

Response time, about eight minutes not many years ago, is now approaching my 
long-time goal for the department: two minutes. Today, it is at two minutes, 20 seconds 
for a crime in progress. 

Page eight 

Let's also give our police force a big hand for the job it did at last summer's Democratic 
National Convention. With 30,000 delegates, candidates and press — and an ample 
outpouring of protestors — the police kept things cool. With the world watching, they 
helped make many friends for San Francisco. Thanks to all. 

Physical improvements are being started at all district stations. Painting and cleaning is 
under way, and plans are moving ahead for more centrally-located Northern and Potrero 
stations and we are investigating the possibility of a permanent Police Academy site. 

Please note also that every category of minority personnel has increased in our Police 
Department. In 1977, 85.2% of the force were white males; today it's 66% and 
declining. This means the police today more closely resemble the City's population than 
ever before. 

Citizens Fighting Crime: Police don't get all the credit for reduced crime. The Mayor's 
Council on Criminal Justice calls citizen participation ";ui essential component" of the 
battle against crime. 

The Council cites two projects — Operation Contact in the Western Addition and the 
Calles Project in the Mission — as having a profound impact on reducing street crime. 
They have helped police prevent crimes and solve others. 

Project SAFE and CUAV (Community United Against Violence) have been extremely 
effective in teaching crime prevention techniques — and recently won a U.S. Conference 
of Mayors award to prove it. 

Following allegations of abuse and unsatisfactory conditions at Youth Guidance Center, I 
formed a committee to investigate. The Committee reported no pattern of physical 
abuse at the (.'enter, ;uid in fact found the staff "dedicated, capable :uid caring 
professionals." Their recommendations for improvements are being implemented. 

Thanks to Safeway, which has joined the Council in the "1 Stop for Red Lights" 
campaign. Help from the private sector is always valuable and always appreciated. 

The City's Schools On a New High: Unified School District superintendent Bob 

Alioto proclaims that our schools have "weathered the challenges of the I970's" and 
through higher achievement have returned "academic respectability" to San Francisco. 

City schools are holding their own among the top 18 urban districts in California, and our 
third graders are ranked Number' One. Enrollment is up 1.5% — 940 students — and 
daily attendence up 967. Pre-enrollment indicates more growth this school year. 

The district is taking other steps to upgrade scholarship and opportunity. Summer 
schools have expanded. Six alternative schools opened. And we've gone high-tech: our 
schools are now equipped with 1,003 computers. 

Page nine 

A. major problem facing the School District is the leplorable condition of school 
buildings. Some are falling apart. Many have leaky roofs, inadequate lighting, broken 
windows, are badly in need of painting and cleaning, and have neglected schoolyards. 
Instruction and maintenance equipment is worn out or missing. Worse still, structural 
deterioration may create safety and health hazards for the children. Repair costs are 
estimated at $85 million. 

Obviously, these problems are critical. Beyond health and safety considerations, children 
react to the teaching environment. Good education is difficult in dilapidated 
surroundings. The school district clearly needs help. 

If the State lottery proposition on next month's ballot passes, it is my recommendation 
that the School District spend the S7 million expected in the first year on upgrading the 
City's schools. 

Meanwhile, teachers and administrators are doing a tough job well. 

Public Health — A Troubled Department : The last year has been turbulent for the 
Department of Public Health, yet it has shouldered some big jobs successfully. 

San Francisco General Hospital came under fire when State inspectors identified 
deficiencies in the quality of patient care. The Chief Administrative Officer has kept 
me advised and [ believe the key to improvement is the filling of the hospital's top-level 
positions and establishing a qualified and diligent supervisorial nursing staff. 

Through it all, S.F. General withstood increases of I7";> in AIDS inpatients, 16% in 
obstetric days, 6% more emergency visits and L0% more outpatients. 

AIDS — Acquired Immune Deficiency Syndrome — continues to hold the highest priority, 
and to require a significant part of the department's education, screening, "counseling and 
home care services, as well as attention to inpatients and outpatients, in the past year, 
S'200,000 in grants were awarded to the department for AIDS rese:u'ch. 

Recently I called together the chiefs of medical staffs of San Francisco hospitals to hear 
a report from Dr. James Curran of the Center for Disease Control. He restated the 
serious, tragic and emergency nature of the AIDS situation. Becuuse of the contagious 
nature of this disease, I reiterate my view that sex parlors, bathhouses and other places 
which encourage or facilitate activities known to spread AIDS must be shut down. 

The Health Department has recently introduced special programs to increase medical 
services to seniors, school children and sexually abused children, and is giving increased 
attention to hazardous materials protection, substance abuse programs and pre-natal 

Fewer Fires and Less Arson : Through more field inspections and public education, the 
Fire Department is chipping away at the incidence of building fires. Each year, there 
are fewer in our city. This year, there were 25 fewer than last year. 

For the first time since 1971, arson fires dropped below 400 last year — and the SFFD 
repeated that success this year. 

Our firefighters responded to a whopping 8,247 medical and rescue calls in the last fiscal 
year. Their average response time to building fires is 2.5 minutes. Good work, San 
Francisco Fire Department. 

Page ten 

Our Parks — Never More Beautiful : America's finest urban park — Golden Gate — has 
had a glorious year. So have parks, playgrounds recreation fields and golf courses 
throughout the City — all thanks to Recreation and Parks Department persistence and 
improved programs. 

Our recreation areas suffered considerable damage in last winter's storms, but damage 
has been repaired and maintenance programs are being pursued. 

Golden Gate Park has been regenerated! Mew plantings and restoration throughout. 
After 22 year's, Huntington Falls is riuining again. The historic Carousel of 1912, shut 
down seven years ago, is again delighting children. A new herd of young buffalo is 
roaming the large paddock. All this and acres and acres of new planting, shrubbery and 

This year all Rec & Park forestry and ground crews were consolidated into the Urban 
Forestry and Turf Management Program. That bureaucratic title means better 
maintenance of all trees in public areas throughout the City. The team will help speed 
up a much-needed reforestation of neighborhood parks. 

Rec & Park also got around to renovating 20 baseball diamonds and more than 200 acres 
of outfields this year, while planting 6,000 clumps of native and exotic bulbs in 
neighborhood parks. 

Meanwhile, Camp Mather broke attendance records, with cabins almost full all season. 
Renovation has begun with new decorating and furnishings for 12 of the 102 cabins. 

Happily, Recreation and Park is doing well by our golf courses, too, and vice versa. The 
well-maintained courses set a record this year: more golfers than ever before. City golf 
courses pay for themselves. 

Much is happening at the Zoo, with new exhibits ;uid construction. The season's 
attendance topped expectations by 39%, Visitors are now enjoying kangaroos and 
penguins. As reported above, two young pandas from t he Beijing Zoo will be our guests, 
and we're expecting koalas sometime next year 1 . 

Public Utilities — Water, Hetch Hetchy : The Water Department again achieved all its 
objectives and San Francisco's drinking water met all federal and state tests for health 
and safety. A bond issue for expansion of filtration on the Peninsula is on next month's 

A long-standing legal dispute with the Water Departartment's customers on the 
Peninsula was settled. For the first time, the department is on a business-like basis, 
allowing rates based on the City's investment in the system. 

And as noted above, we have favorably settled our long-standing rate negotiations with 
the Modesto and Turlock Irrigation Districts. 

Hetch Hetchy, our Sierra water supply, again met and even exceeded all demands for 
water and power. On the horizon: Wild & Scenic status for the Tuolumne, passed by the 
Senate and pending in the House, requires reevaluation of plans for future water and 
power development. 

Page eleven 

Public Works — Year of Activity: it's been one of those years for the Department of 
Public Works, pursuing projects of every kind throughout the City. 

The massive Clean Water Program has many dimensions. The Board recently approved 
the $10.1 million co-generation facility at the Southeast plant, expected to save $1.1 
million a year in energy costs. Work begins this month on the Southeast Community 
Facility. And the barge "Betty L," back on the job after a year's recuperation from 
storm damage, is laying 2000 feet of large pipe a month for the Southwest Ocean Outfall. 

This year, DPW's Bureau of Streets repaired 20,000 potholes — not a record but pretty 
good. And it matched last year's all-time high of 105 lane miles of street resurfacing. 

DPW's use of Work Fare — the program in which recipients work for their welfare 
checks — has become a major contributor to its operations, supplying about 780 people a 
week to perform a wide variety of unskilled jobs. 

And of course, whenever there is City work, DPW is there: the Stockton Tunnel 
beaut ification, Huntington Fails in Golden Gate Park, the upper Market Street 
beautification, and numerous other projects. 

New Life for the Old Port: As capsuled above, maritime and commercial activity at the 
Port is greatly increased and upgraded. 

This year San Francisco became the first California port to move toward an on-dock 
intermodal container transfer — witfi direct rail service dockside at Piers 94-96. And 
our containerization capacity has been increased with installation of a S4 million crane 
and removal of an obstructing shed at Pier 80. 

The year was also marked by the signing of the first long-term contract with the Chinese 
Ocean Shipping Company (COSCO), and we expect to sign another major agreement 
before the year ends. 

The next 12 months will see more Port improvements — upgrading of its maritime and 
commercial facilities. Port Director Gene G art land is determined, as we all are, to 
restore San Francisco's pre-eminence in Pacific shipping. 

Importantly, 1 urge the Board to help the Port maintain and enlarge its maritime 
capacity by supporting the S42.5 million bond issue on the November ballot to upgrade 
Piers 80, 94, 96, 70 and 43. This money will give San Francisco the most modern port 
facility on the West Coast — offering exclusive on-dock rail transfer from container 
ships and a deepened SP tunnel that permits double-decking containers on rail cars. 

I should note here that while West Coast shipping showed a deficit in 1983, the San 
Francisco Customs District showed a surplus of S36 million. One reason: the Bay is 
closest to California's largest agricultural regions. Another: High tech exports from 
Silicon Valley. Japan remains the largest trading partner, followed by Taiwan, South 
Korea, Hong Kong, Singapore and West Germany — with more than 70% of California's 
exports going to Asia. 

Page twelve 

Federal legislation passed this year to help build the Fisherman's Wharf breakwater — 
designed to protect the fishing fleet from wave action. We can expect it to bring a 
happy return of our commercial fishing fleet. The City is grateful to Congresswoman 
Sala Burton and Senator Pete Wilson for helping make it happen. 

Construction will also begin this fiscal year on Pier 7 — a beautiful public fishing pier 
with picnic facilities that promises fun for nearby workers and for families on weekends. 

The Arts — Reaching New Heights: A record 670,000 arts lovers packed the War 
Memorial and Performing Arts facilities this year to see a greater variety of performers 
than ever before. The Opera House was used full time, ;ind Davies Hail's '206 
performances were a 33% increase over last year. Herbst Theater and Green Room 
usage jumped 20%. 

The year's most dramatic success was The Vatican Collection at the De Young Museum 
— which attracted an incredible 600,000 people. They are estimated to have spent S50 
million tourist dollars while here. 

Thanks to Wells Fargo, the De Young was open free to the public on Wednesday nights 
last summer — and 20,000 people enjoyed themselves. 

The Art Commission is proud and happy with the return to Civic Center of the Arts 
Festival. With 900 artists contributing and performing arts added, this low-budget show 
drew 80,000 people — up from 11,000 last year at Fort Mason. It promises to he even 
better in 1985. 

After its 1980 fire, the Commission's Art Gallery has risen like a Phoenix from the 
ashes. Reopening L6 mouths ago, it lias held six exhibitions and drawn thousands. 

The Library's Good Reading: Use of the public library continues to grow. Librarian John 
Frantz reports the city wide loan of books rose 3% to 2.7 million — or almost t'oiu 1 per 
capita. The most impressive Library improvement was at the Waden Branch in the 
Bayview- Hunters Point area — where circulation jumped 21%. Main Library and seven 
branches are now on-line to the computer-controlled loan system. 

Attention Seniors: The Commission on Aging reports seniors were served 1,169,000 hot 
meals at noontime at 59 sites, and 369,000 meals delivered to seniors at home. Seventy 
senior centers throughout the City provide recreation and social services, while there is 
growing senior interest in legal services, information and referral, nursing home 
ombudsman assistance and emergency at-home services. 

Sales an d Assessments Up: While real estate sales were dropping around the country, San 
Francisco showed a 6% increase in the first six months of 1984 over the previous year, 
the Assessor reports. And total City assessed value increased approximately 11% — 
above the average of other cities and comities in California. 

Significantly, in the past five years the commercial/industrial portion of the property tax 
distribution has increased 10%, with the residential portion decreasing. The Assessor has 
just informed me that in the 1984-85 assessment role, revenues from 
commercial/industrial are 54.5 percent, single family homes 25.6% and multi-family 
homes 19.9%. The significance is that residential property is no longer paying the 
heaviest burden of dollars, which was the case just after passage of Proposition 13. 

Page thirteen 

International Activities: San Francisco is increasingly active on the international front. 
As the Century of the Pacific approaches, I am convinced international activity will be a 
key factor in our future. This year, Pacific trade surpassed Atlantic trade for the first 
time, a historic milestone. And in 1984, our City has hosted six heads of state. Our nine 
sister city programs are active and increasingly substantive. 

In recognition of this heightening international orientation, the State Department has 
loaned my office a full-time foreign service officer, Diane McClellan, to serve as a 
special assistant for these purposes. I am planning to lead delegations to Shanghai, 
China; Cork, Ireland and Haifa, Israel between now and next summer. 

City's New Payroll System: This is the year City employee records and payrolls were 
converted to a new, computerized system — the long-sought improvement of an 
antiquated process. As of last month, 41 departments are on the new system. Another 
seven departments will be on by year's end and the four final conversions will come next 
year. And for the second year, San Francisco was awarded the highest recognition for 
govenunental accounting and financial reporting: the Certificate of Conformance. 
Congratulations, Mr. Controller. 

The Airport — Flying High: S.F. International ranks as the nation's sixth most active 
airport, served by 58 airlines and handling 22 million passengers and 393,220 tons of 
cargo last fiscal year. One of the few municipally-run airports that retiuns money to 
the General Fund, the Airport set a record this year: $6.6 million. The South Terminal 
renovation, just begim, will give San Francisco a like-new air facility second to none. 
The Airport has received its eighth consecutive Aviation Safety Institute Award — a 
feat unmatched by any other airport in the world. 

Criminal Justice — Progress: Public Defender Jeff Brown points out that while the 
criminal justice systems of other cities are in chaos, San Francisco's is a model of 
efficiency. He notes that Municipal and Superior courts try cases within 60 days of 
arraignment, jail programs have greatly improved and both the District Attorney and 
Public Defender can present cases in an effective, professional muniier -- to assure fair 

City Attorney's Report: The City Attorney's office reports that it settled 1,050 claims 
against the City for $327,464 — but denied 1,552 for 83,925,466,457. And his trial staff 
disposed of 812 tort cases seeking S 19 1,490,506 for S7 million. 

The Sheriff Moves Ahead: Sheriff Michael Hennessey's recruiting for new deputies 
reached into all San Francisco's diverse communities. Of 1,000 people accepted for civil 
service testing, 76% were minority or women applicants. And of tlu'ee promotions to 
Captain, two were women and one a black officer with 15 years experience. The 
Sheriff's Work Alternative Program is also doing well — the alternative to jail provided 
108,000 hours of work for the City. 

Human Rights Milestone: In April of this year, the Board enacted and I signed the 
Minority & Women Business Enterprise Ordinance. It set into the Administrative Code a 
policy "establishing requirements to ensure full and equitable opportunities" for minority, 
women and local business enterprises to provide goods and services to the City and 
County. This ordinance was enacted after the Human Rights Commission revealed that 
of S400 million in contracts annually, less than 3% have been awarded to minorities and 
women-owned businesses. 

Page fourteen 

This strong legislation establishes citywide goals of 30 percent of all contracting dollars 
going :o minority-owned business enterprises and 10 percent to women-owned 
businesses. Departments are preparing plans to be approved and monitored by the 
Human Rights Commission. 

Hearing Tenants and Landlords: The Rent Board is one of the busiest offices in City 
government. A six-person counseling staff dealt with 56,000 phone inquiries. The Board 
processed, heard and approved 400 landlord petitions for rent increases in 3,276 units. It 
heard 1,273 tenant requests to deny rent increases, and investigated 891 claims of illegal 
evictions. And hearing officers conducted 1,280 rent arbitration hearings. 

Treasurer's Report: Interest paid on investments has been lower this year, but Treasurer 
Mary Callanan reports another very successful year for City investments: S107 million 
earned, with a total yield of 11.4%. In addition, overall collections increased 8% to 
S42,370,000. The computerized Tax Collector managed to process December L0 tax 
payments in just three days and the April 10 payments in two. 

I cannot conclude this report without expressing some forebodings about two initiatives 
on next month's State ballot. 

Proposition 36, the so-called Jarvis IV, would strike San Francisco and other cities a 
devastating blow. The Controller estimates the City would owe $50 million in tax- 
refunds. We estimate another S26 million would be needed to take over retirement 
programs the initiative prohibits in various "enterprise" departments, such as S.F. 
General Hospital, t he Airport, the Water Department, Hetch Hetchy and Laguna Honda. 
And our ability to adjust fees would he greatly impaired. 

Ostensibly limiting benefit expeuditiu'es for public aid and medical assistance programs, 
Proposition 4L would in tact swell the City's general assistance rolls. It is conservatively 
estimated that passage of this proposition would cost San Francisco S100 million. 

These initiatives constitute a twin danger to our City. Despite our fiscal efficiencies, 
good management and balanced budgets, they constitute a fiscal threat to our future. In 
my view, we have a responsibility to work for their defeat. 

This report shows San Francisco is doing well as compared with most urban areas. We 
are on top of our problems, and looking ahead. No city can escape change, but this one 
can certainly escape its dangers. As a new century approaches, San Francisco should 
prepare to play its role. The role may well depend on the quality of our planning. That, 
too, is part of our job. 

We have a City government that is running more efficiently, and in good shape to 
prepare for its future. 

Page fifteen 

[ beiieve we now have a set of City managers second to none. But innovation, creativity 
and tougher standards are much-needed for our work force. Last January, in my 
inaugural statement, I said one of my top priorities is Charter reform to achieve more 
effective personnel management. I believe this now more than ever. 

San Francisco's managers have a right to manage — and the people expect them to 
manage efficiently. If that requires a fundamental Charter change, I believe people will 
favor it. 

Meanwhile, virtually every department now works under our "management by objectives" 
system, which sets goals and monitors them. Through this process, I review each 
department quarterly, and I am now in the process of my annual reviews. The letters of 
report to each department will be bound and sent to each Supervisor, so that you may be 
fully aware of the state of City departments. 

As public officials, our vision for San Francisco must encompass every ingredient of the 
urban landscape. It must be rooted in enriching the lives of each of us — and involve the 
whole array of needs we know people want. 

Those of us who choose city life do so for a variety of reasons, but there are many 
common denominators. We all want good lives, jobs, schools, transportation, shopping, 
parks, libraries, clean streets, police and fire protection and all the positive things. Our 
jobs as public serv;mts is to help make them possible, and hopefully to make them better. 

Thank you. 




5 I I 


Office of thg-Mayor 
San Francisco 


Monday, October' 7, 1985 


JAN 2 1988 


In this State of the City message I will touch on points important to the future of the 
City: specifically our finances, the baseball stadium question, a summary of progress 
on the Six Point Housing Program I put forward in 1981, and the economic future of 
the City as the Pacific Rim begins to grow and flourish. 

First, some highlights since my last report to you. 

In this past year, your Honorable Board and I have worked to benefit the economic and 
social well-being of our people. There are both achievements and concerns. Eet me 
cite some of each: 

Our economy remains vibrant and healthy, with unemployment at a low 8.6 

percent, as compared with 6.7 percent last year at this time — largely thanks to 
the fact that our downtown has continued to generate at least 10,000 new jobs 
each year. Security Pacific Bank predicts a 7% rise in retail sales. Our Number 
One industry, conventions and tourism, is expected to be up as much as 10% this 

While the City's crime rate has fallen sl i ghtly after a de <- tine of 10% last year, 
there are n ew concerns: drug tr aff icking and violent crir . s. Recently, reports 
from the neighborhoods of suspected drug operations have harply increased, and 
there is fear that crackdowns in other Bay Area cities have sent narcotics 
peddlers here, [f that is so, let them be warned: you -are not welcome in San 
Francisco, our citizens don't want you and won't tolerate you, and our police are 
targetting you. 

I ask all our citizens to work with the police to ferret out those who murder, rape, 
maim and peddle drugs here. The 553-1600 police hotline will take information 
without requiring identity of the caller. 

Chief Con Murphy has designated a special effort, Target ted Narcotics Task 
Force — TNT, and the Police will work .lore closely with citizens ;uul 
neighborhood groups in the Western Addition, Tenderloin, Mission :uid particularly 
in the housing projects. People willing to name names and give addresses of 
suspected criminals deserve the fullest help from the police. 

After a 10% decline last year, the overall crime rate has dropped 1-1/5 
this year — but homicides, rapes and aggravated assaults are climbing. 

so fa- 

Police have continued to reduce their response time for crimes in progress — now 
at an all-time low of two minutes and five seconds, citywide. 


A new command structure is now in place in the Police Department, with two 
commanders in charge of all street operations, day and night, and a sergeant 
supervising the performance of each squad of officers on every watch. 

The Downtown Plan is now Law, and our city hecomes the first in the nation to 
enact strong controls on the height, hulk and density of buildings in the 
downtown core. Future approvals of all buildings of more than 50,000 square 
feet anywhere in the City will be limited to 950,000 square feet per year or 
2,850,000 square feet over the next three years — meaning that the rate of 
high-rise approvals will be slowed to one-third of that which has taken place 
over the past four years. 

The plan is accompanied by precedent-setting legislation containing the Office 
Housing Production Program (OHPP), an Affordable Child Care Fund, the Transit 
Development fee, special requirements for art and open space, the preservation 
of 250 buildings of architectural merit, and the creation of seven Downtown 
Historic Preservation Districts. I thank Supervisors Molinari, Silver, Maher, 
Renne, Ward and Nelder for their votes on this Landmark legislation. 

San Francisco has aggressively fought AIDS. This year we have committed 

more than $8 million in a broad medical initiative that ranges from acute wards 
at San Francisco General Hospital to hospice, counseling and health services 
throughout our city in both the private and public sector. This tragic disease 
continues its heavy toll, but as a people we remain committed to doing all we 
can to help — wherever we can. 

We have taken the last steps in the 15-year struggle to create a major urban 

park, hotel and office center in Verba Buena Center. 

San Francisco continues to rebuild its Port as a renewed maritime center — 

with new shipping contracts with P.V.C., Independence, Ned-Lloyd, Elma and 
Navicana Lines. And the Port is continuing to negotiate for more shipping 
contracts. Overall toimage is up 44%, container movements up 64%, Pacific 
container trade up 80%. Rail movements have increased o0% and maritime 
revenue 22%. 

Engineering plans for both the container terminals and the Intermodal Transfer 
Facility at the Port, made possible by the S42 million Port maritime bond issue 
passed last November, ;u-e completed and approved. The Port is ready to go to 

Our chances to develop ship repair a.s a major source of blue collar jobs 

improved greatly this year when San Francisco was preliminarily designated as 
the home port for the USS Missouri. 

The Missouri will bring one cruiser, four frigates and two minesweepers, a 
payroll of more than S50 million, at least S35 to 45 million in annual contracts, 
300 to 400 annual ship repair jobs and S180 million of construction in housing :uid 
base improvements resulting in up to 4,000 jobs. 

1 thank Supervisors Molinari, Renne, Kopp, Maher and Nelder, Congresswoman 
Barbara Boxer and Senator Pete Wilson for their support in bringing this Surface 
Action Group to San Francisco and the more than 12,600 San Franciscans who 
wrote letters and cards to Washington in support of the homeporting. 

in ore 

The 49er lease extension and renovation program will guarantee the presence 

of professional football in San Francisco until at least 2007 in a world-class, 
Superbowl-eligible stadium. It will be remodelled on a basis whereby all monies 
advanced by the City are repaid in full by 1992 and earn the City $39 million 
over the balance of the lease, with the need for the Hotel Tax subsidy virtually 

My thanks to Supervisor Kopp for his leadership role in heading the successful 
negotiating team and to Supervisor Molinari for joining me in Phoenix where 
tentative agreement was reached on the broad outline of this renovation program. 

The two-and-a-half year interim agreement signed in June between the City 

and the Modesto and Turlock Irrigation Districts for the sale of Hetch Hetchy 
power will allow San Francisco to realize approximately S2o million per year in 
additional revenue, which then becomes available for transfer to the General 
Fund. Over the course of 30 years, the finalized agreement will produce S750 
million in a major source of new revenue for the City. 

The Muni Railway, functioning with 280 new vehicles, has greatly increased 

reliability, rider confidence ;uid satisfaction, and is now operating more 
efficiently than at any time in the past seven years. With its new director, 
William G. Stead, Muni promises continued improvement. 

However, an urgent Muni matter is currently before you: the proposed fare 
increase from the present 60 cents to 75 cents and fast passes from S20 to S25. 
Constant federal cutbacks have taken their toll as both capital and operating 
grants are diminished. The budgetary prognosis is increasingly difficult: without 
an immediate fare increase the Muni could require S60.9 million more from the 
General Fund over the next two veal's. Muni's financial emergency cannot be 
wished away. I call upon your Honorable Board to approve what is a responsible 
and absolutely essential fare package. 

I am sorry to say one major department remains troubled: the San Francisco Housing 
Authority. However, a new director, Mr. James Clay, is now on board. His highest 
priority is to place this agency on a strong financial footing and develop a plan to pay 
the So. 4 million in debts. Touche Ross is performing a full audit of finances as other 
investigations continue. 

Additionally, HUD Assistant Secretary of Housing Warren Lindquist has told me that 
his agency will no longer tolerate any craft wages above prevailing rates. This 
presents very real problems with certain unions. 

Meanwhile, the Department of Housing and Urban Development recently has given 
new life to the Plaza West project in the Western Addition. HUD granted some S13 
million for construction of 204 family and low-rise garden court units and S2.5 
million for demolition of the existing high-rise buildings — plus a pool of S16 million 
for rehabilitation and modernization of any Housing Authority projects. 

The Commission will shortly approve a plan for projects to be rehabbed, with vacant 
units a priority. Fifty-three new Section 8 certificates will enable the Authority to 
maintain the existing level of units while gaining a significant increase in bedrooms. 
Clearly, under this plan, the long-troubled Plaza units will gain a new birth. 

in ore 

It is my intention to maintain close and careful oversight at the Housing Authority, 
and I expect progress in the near future. 

In January, the supervision for the Department of Health and its 5,000 employees, 
two large institutions and a S300 million budget was transferred by the electorate to 
the Mayor and a Health Commission. Budget increases of the Health Department 
since Fiscal 1980/81 are more than 95% ( from $154,000,000 to $301,000,000 ). This 
is more than any other City department. 

Although as a city ;uid comity, we have a broader program than any other local 
jurisdiction in the state, the Department must tighten its administration and improve 
cost containment if it is to continue its broad array of health services. 

Good news is that Dr. David Werdegar, the Director of Health, will be able to remain 
for an additional year — to January of 1987. Also, the state has certified Laguna 
Honda Hospital and approved its open ward waiver. A supplemental appropriation for 
better maintenimce and improved patient privacy will reach you this week, and I hope 
receive your approval. 

Also, your Honorable Board will soon receive legislation introduced by Supervisor 
Walker to transfer the respoi\sibility for hazardous materials and waste to the Health 
Department, where a special unit with broad authority will, with your support, be 


Two weeks ago, on September 24th the Controller, the Board's Budget Analyst and 
my office stated that as of that date the City could face a shortfall of approximately 
S76 million next year. 

Obviously, a projected shortfall of that large amount of money is a considerable 
concern. But let me assure this Board, and the people of San Francisco, that the 
budget submitted to you next June will be balanced and sound. However, we will 
need a combination of cuts mid revenue increases to do it. 

There is not now, and will not be, a deficit. Our fiscal house is in good order. For 
seven years you have received balanced budgets and you will again for Fiscal 1986/87. 

It should be remembered that while developing the present budget, S1H4 million 
in departmental requests and 438 requested employees were cut. In the prior, S58.3 million mid requests for 287 positions were trimmed. 

In my Budget Message last May 30th, we warned that the surplus we have enjoyed in 
recent years was gone and that "leaner days lie ;ihead." It said we were taking 
certain strong measures to limit expenditures — noting that budgetary uncertainties 
"may force additional cuts this year, and they will have a significant impact next 

The reports of a possible shortfall next year, therefore, should come as no surprise to 
anyone, mid steps are being taken to reduce spending ;urd prepare us fur 
depart ment-by-department belt-tightening. 

m o r e 

Historically, the City has spent more than we take in. What some have called a 
"surplus" two years ago enabled us to increase services, reduce the Business Tax, the 
Muni Fast Pass and many fees while still maintaining a balanced budget. 

The purpose of budget projections like those released two weeks ago is to help us 
identify and avoid problems while there is still time to take corrective actions. Such 
projections document "one point in time" — and fiscal factors actually change 

Revenues change, and already have. Example: the recent Bank of American building 
sale has just resulted in S3 million of Property Transfer Tax and S4.1 million of 
property taxes, or a total of S7.1 million for FY 85/86. It will generate an estimated 
$5.5 million in FY 86/87. 

Revenues and expenditures will continue to fluctuate somewhat throughout the fiscal 
year. Until we can be more certain what those changes will bring, I am taking the 
following actions: 

L — Issuing budget instructions to all City departments for FY 86/87 which will 
ask them to prepare budget options at reduced levels, which contain no new 
programs and reduce equipment, travel and contractual service accounts; 

2 — Evaluating each new employee requested for need, delaying the hiring of all 
non-critical personnel, and freezing all non-critical General Fund-supported 

3 — Disapproving all supplemental appropriations for new money unless they are 
mandatory or essential; 

4 — Asking those departments which can to prepare fee and other 
revenue-generating proposals; 

5 — Freezing the Affordable Housing Fund, which now contains S3. 9 million, for 
use in balancing next year's budget if necessary; 

6 — Launching a lobbying effort in Washington to restore Revenue Sharing; 

7 — Asking the voters to repeal the S30 million meal allowance trust fund in the 
November election; 

The General Fund budget chart on the next page shows the spending trends in 
constant dollars (less inflation) and current dollars since 1977. It illustrates that in 
constant dollars, spending has remained on an even keel for eight years. 

In addition to holding the line on spending while maintaining a high level of services, 
we were able to achieve a more favorable balance of reserves in 1982. Existence of 
these monies enabled us to make a substantial and positive investment in San 
Francisco's plant and infrastructure, and to improve critical services. 

In addition to providing basic support for City operations, surplus dollars have been 
appropriated for infrastructure (S52 million), health (S15.4 million), schools (S6.6 
million), Muni vehicles (S22 million), affordable housing <S10 million), reducing taxes 
and fees (S10 million) and deferring an increase in the Sewer Service Charge for San 
Franciscans (S12.7 million). Those few items alone total S127 million. 

m o v e 



■°- Current $'s 

Constant $*s 

1976/7 77/78 78/79 79/80 80/81 81/82 82/83 83/84 84/85 85/86 

Base Year = 1 974-75 

Now, let us look more closely at that projected S76 million shortfall in the budget 
that begins next July I, ;md see where it is coming' from. Its two largest components 
by far — neither of which could have been anticipated in earlier budget projections 
— are occasioned by: 

1) The death of federal Revenue Sharing, which will result in the loss of 
S21 million per year — now shared equally by the Police, Fire, Muni and 
Park & Recreation departments. I and other mayors, together with 
legislative bodies like yours across the country, intend to make a vigorous 
effort toward reauthorization of this vital program, but at this time I i m 
not optimistic — due to the huge size of the federal deficit and White 
House opposition. 

2) The passage of this Board's ill-advised scheme for "comparable worth'' in 
the form of a meal allowance and trust fund. This will total S28 million, 
with Social Security and retirement benefits potentially adding $2 million 
over this year and next — driving its total cost up to S30 million if 
implemented. As I have indicated, 1 have no intention of approving an 
appropriation for this vast sum, so the money must remain in reserve where 
it cannot be used to fund the budget. Therefore, unless an accommodation 
can be reached, S28 million worth of service cuts ;md layoffs may b»- 

Additionally, two categories of revenue projections have been substantially 
decreased. One is the "Business Tax," where ;inticipated revenues are S8 million 
below earlier estimates. The other is "Interest Income," which also fell So million 
below the amount estimated. In short, we have effectively lost S16 million of 
revenue to fund the 86/87 budget. 

Loss of the Business Tax revenue is particularly disturbing, since employment has 
risen. But the sharp decline may not be long-term. Banks and insurance companies 
— which do not pay the tax — have moved several thousand employees out of the 
City; as other taxpaying companies occupy their office spaces, revenues should slowly 
regenerate. Also, the downturn felt by certain businesses has reversed. The lower 
interest income is due to declining interest rates, however, and can be expected to 

In the immediate future, we are in need of strong fiscal restraint if we are to 
maintain an improved level of services for our people. 1 can only hope that this Board 
will work cooperatively to protect revenues — and also to protect services. 

In the final analysis, it is not enough for us to balance the budget this year and next. 
We must face up to the hard reality that our spending and income are not in balance. 
Now that our surpluses are gone, we must focus on the basic problem: expenditures 
have been increasing faster than revenues. 

Each year, the gap between spending and income has been filled, but each year it has 
grown wider. And each year, we have huge mandated cost increases — largely in 
salaries — which do not improve or increase services to the public. 

Both your staff and mine have been taking a hard look — in fact, many looks — at 
possible initiatives to narrow the budget gap, by reducing spending or increasing 
revenues or both. There are several options under consideration. 

We intend to carefully watch revenues and will, at the appropriate time, either with 
the FY 86/87 budget in Jtuie or earlier, present a package designed to eliminate next 
year's potential shortfall ;uid balance the proposed budget. 


San Francisco must now face up to a very basic question: 

Do we want to keep major league baseball in San Francisco? 

There is no doubt that unless we act now, we risk losing the San Francisco Giants. 

For years, the team has been unhappy with Candlestick Park. And for years, we have 
tried to improve the park to keep the Giants here. Quite obviously, that has not 
worked. Last week, the Giants announced they intend to play in Oakland until San 
Francisco builds a downtown baseball stadium. 

I supported Bob Lurie in his announcement only because I believe it offers us one last 
chance opportunity to keep the Giants by taking the step to build a new stadium. My 
backing included: 

— A stipulation that a lease modification be negotiated that will remunerate San 
Francisco for revenues lost at Candlestick and sufficient to enable the City to 
secure an option on a site suitable for a downtown stadium, with an upfront 
deposit or guarantee from the Giants repayable only upon the team's return to 
San Francisco. 


— Appointment of a negotiating team, headed by Board of Supervisors 
President John L. Molinari, with Supervisor Quentin Kopp leading a site 
acquisition effort. 

— A condition that Giants owner Bob Lurie directly and actively assist Peter 
Stoeker in his efforts to build, own and operate a basenall stadium on Rincon 

However, there is a key to all of us, and that is that six members of this Board be 
on record in favor of a new baseball stadium. I urge your approval of Supervisor 
Kopp's resolution to utilize a portion of Rincon Point for the site and continue the 
"P" zoning of the site in the Rincon Point Plan, now back at Planning. 

I look upon major league baseball as an essential component of a major league 
city. Loss of the Giants would be a heavy blow to San Francisco's civic stature. 
However, unless there are six votes on this Board for a site, it is my opinion that 
professional baseball in San Francisco will be no more. 

The stadium proposal by Peter Stoeker is unique. It is not cold gray concrete, but 
contains within its walls shops, restaurants and a hotel. It will also serve as a 
convention and entertainment center — with an air-supported roof that can be 
used in non-b;iseball time. It is exciting in design and concept, and can become a 
very special place. And it will be financed by private dollars. 

I have been puzzled by those who say there is no room for a stadium, that we must 
use any stadium site, instead, for housing. In fact we can do both, and have been. 
So, let us now examine our housing achievements of the past few years. 


Building quality and affordable homes continues to be this administration's highest 
priority, and we have made substantial achievements with a multiplicity of 
innovative programs: 

In 1981, we instituted the Office Housing Production Program (OHPP), 
requiring highrise office developers to contribute to housing. 

In 198*2, we became the coiuitry's first city to combine private funds with SGU 
million in tax-exempt bonds to create a shared-appreciation mortgage pool 
to enable families to buy homes around the City. 

In 1983, combining federal fluids and proceeds of an S8 million bond issue, we 
financed home improvement loans for low and moderate-income homeowners 
— the first such program in the West. 

In 1984, San Francisco set aside S10 million as ;ui Affordable Housing Fund — 
of which So. 5 million is now committed to building 378 units of housing. 

In 1985, we undertook a major re-zoning of under-used lands — destined to 
create sites for nearly 14,000 new dwellings. 


In summary — despite the high costs and high interest rates — the program I 
announced five years ago has produced nearly 5,000 units of new or rehabilitated 
low and moderately-priced homes and apartments, with many more on the way. 
And through rezoning and using publicly-owned lands, we have created sites for 
23,000 new dwellings between now and the year 2000. 

This program must be maintained as firm City policy, for the need for housing 
remains apparent to all. We have made a strong beginning. 

Building housing in San Francisco is complex and difficult. Problems and 
obstacles follow us every step of the way. Let me illustrate some of the problems 
and some solutions. 

The Problem: Few sites for new homes. 

The Program: Rezoning under-used commercial areas of the City. 

There is little space in existing residential neighborhoods, so we are planning to 
rezone three major areas to create new residential possibilities. They are: 

1) Mission Bay... These 200 acres of railroad yards lie desolate just south of China 
Basin — on the waterfront, near downtown, with glorious views and a wonderful 

After a year of negotiation with Sante Fe/Southern Pacific, we have emerged 
with a tentative recommendation for the largest in-town development ever in 
America. It calls for 7,500 dwellings — of which at least 30% must be for 
moderate-income households. This promises to become an exciting new 
community in San Francisco's heartland: Offices, stores, research and 
development — ;uid none above eight stories, reduced from the original 
proposal of 42 stories. 

2) Rincon Hill... at the foot of the Bay Bridge. 

Already rezoued for housing and small retail-commercial uses, Rincon Hill 
can, I am convinced, accommodate both housing and a uniquely-designed 
urban stadium. I remember the time when many doubted that the Fox Plaza 
Apartments could be build next to the Civic Auditorium. They were, and are 
a great success with a constant waiting list. 

This Board has already passed and I have signed legislation offering a S48 
million mortgage revenue bond to finance low-interest loans to developers of 
316 rental apartments at the site of the old Rincon Aimex Post Office. 

3) Van Ness Avenue... from Market Street to Bay. 

Rezoning will turn a purely commercial thoroughfare into a boulevard of 
apartments. This will pave the way for an estimated 2,000 units, all within a 
quick bus ride or a short walk to Civic Center and downtown. Two major 
apartment complexes are presently under construction. 



The Problem: Parcels of public land remain vacant or under-used. 
The Program: Develop homes on surplus City-owned land. 

1 asked City agencies to inventory all surplus public properties and to promote 
development of affordable housing on all appropriate sites — many of which had 
been neighborhood eyesores for years. In four year's since we began, this has 
produced sites for more than 1,700 units of housing. Some examples: 

** Parkview Heights, at Wisconsin and 26th Streets on Potrero Hill — where 114 
two and three-bedroom town houses have been built on six acres of surplus land, 
sold to low and moderate-income first-time buyers for S70.000 to 5114,000. The 
free land and mortgage revenue bonds reduced the prices! 

** Holloway Terrace, on the long-vacant Farragut School site in the Ingleside — 
where 42 two and tlu'ee-bedroom homes will sell for 585,000 to 595,000. 

** Amancio Krgina Village, on Redevelopment Agency land at Scott and O'Farrell 
Streets — where 72 two and three-bedroom homes are selling for 570,000 to 

** Northridge Cooperative Homes, on Redevelopment land at Hunters Point — 
where 300 family homes at market rates helped revitalize the community. 

** St. Francis Place, at Third and Folsom Streets near Verba Buena Center — 
where 400 rental units are about to open, the first major unsubsidized rental 
housing here since rent control. 

** Balboa Reservoir, the vacant 13-acre site on Ocean Avenue next to City 
College — where a developer has been selected to build 200 single family homes, 
with the land given free to reduce the cost of the housing. 

Unfortunately, after strong neighborhood input into the process and 
unanimous concurrence on the proposed housing and its developer, a small 
group is circulating peititions to place this on the ballot in the hope voter's 
will turn it down. I do not believe that will happen. 

** Polytechnic High School, the surplus site in the Haight-Ashbury obtained by 
the City for S2.5 million — where we will seek a developer for 160 single family 
affordable homes, across the street from a Kezar Stadium recreation complex we 
propose to build. Again, the land is free — which reduces the price of the homes. 

The Problem: Office developments which increase housing needs. 
The Program: The Office Housing Production Program. 

Through our unique, pioneering Office Housing Production Program (OHPP), office 
developers have contributed more than 525 million which has helped to finance 
2,400 units of new housing mid rehabilitate another 1,300 in the past four years. 



More than 75 percent of those units have been for low and moderate-income 
residents. Boston has passed a similar ordinance, and many other cities, including 
Seattle, Washington ;md New York, have expressed interest in following San 
Francisco's lead. 

OHPP provided $2.5 million to rehab the Western Addition's rundown, crime-ridden 
Pink Palace into today's Rosa Parks Apartments, home for 305 senior citizens. It 
provided S3. 5 million to save Hunters Point's 300-unit cooperative, Northridge 
Homes, and S588,000 to help rehabilitate the old Herald Hotel into 73 apartments for 
the elderly and handicapped. 

The Problem: High interest rates. 

The Program: Mortgage revenue bonds to bring the rates down. 

By selling tax-exempt bonds, the City is able to offer first-time home buyers ;uid 
rental housing developers low cost, fixed-rate financing — at up to three points 
below market rates. 

Since 1982, the City has sold S126 million in bonds — providing 30-year, low interest 
mortgages for 1,230 low and middle-income first-time buyers. In June, the City sold 
S44 million in bonds to finance 563 units of rental housing at Winterland Apartments, 
Aspen South Hills Apartments, Mission-Capp Apartments and St. Francis Place. 

The Problem: Affordable homes for low-income persons. 

The Program: We have developed 2,000 units, using all available means. 

In recent years, the City has seized upon every remaining federal, state and local 
source, increasing low-income housing production to its highest level in 10 years. 
The results: 

All Hallows, 45 units at 65 Navy Road 

Aspen Tenderloin I, 27 units rehabbed for seniors at 165 Turk Street 

Aspen Tenderloin II, 53 units rehabbed for seniors at 249 Eddy Street 

Casa de la Raza, 51 family units over parking at 22nd and Bartlett 

Ceatrice Polite, 95 units at Clementina and 4th Street 

Colosimo Apartments, 11 family homes at 1389 South Van Ness Avenue 

Dorothy Day, 100 apartments to be built at 54 McAllister Street 

El Bethel Terrace, 101 units at Fillmore and Golden Gate Avenue 

Fair Oak Apartments, 48 family homes at 799 Oak Street 

Hal Diudeavy Plaza, 48 units over parking at 16th and Hoff Streets 

Herald Hotel, 72 senior rehab units at 308 Eddy Street 

Jones Memorial II, 51 units at Fillmore and Post Streets 

Lassen Apartments, 81 senior rehabs at 441 Ellis Street 

Mariposa Gardens, 63 family homes at 2445 Mariposa Street 

Mei Lun Yuen, 185 imits subsidized by HUD at 945 Sacramento Street 

Mercy Terrace, housing 58 seniors at Baker and Fell Streets 

Mission Bart Apartments, 13 family homes at 2834 Mission Street 

Northridge Co-op Homes, 300 family homes at 1 Ardath Court 

Ocean Beach Park, 83 family homes at LaPlaya and Balboa Streets 

O'Farrell Towers, 101 units at 515 0'F;irrell Street 

Padre Hotel, 50 senior rehabs at 241 Jones Street 

Wharf Plaza I, 96 units at Francisco and Greenwich Streets 

Wharf Plaza It, 134 senior units, 16 family imits at 1855 Kearney 

Woolf House II, 70 units at 301 Howard Street 



The Problem: Loss of existing rental housing units. 

The Program: Rehabilitation of 6,000 apartments and houses. 

We have sought not only to increase the supply of affordable homes, but to upgrade 
the existing stock. Using a variety of programs, the City has improved conditions 
without displacing low and moderate-income people. More than 1,500 units in the 
Tenderloin alone are being or have been rehabbed, ;uid another 2,000 are being 
brought up to code under the Rehabilitation Assistance Program. 

In other neighborhoods the City has worked with non-profit developers to facilitate 
rehabilitation of 3,000 units. 

These programs have worked in conjunction with the rezoning of the North of Market 
— now complete — and Chinatown and South of Market — now underway. In 
addition, the City has legislated strict controls on speculators who want to convert 
rental units to condominiums. 

I have itemized these projects to demonstrate that San Francisco's housing program 
is in place and working. Through rezoning, developing publicly-owned lands, requiring 
office developers to help housing, focussing on low and moderate-income needs and 
by using creative financing tools, we have begim a process that can ease the housing 

Maintaining affordable, attractive homes within the City is absolutely essential to its 
health and to the vitality of our workforce. Clearly, it is mandatory that we work 
together to continue to strengthen and expand this fullscale attack on our housing 


Of all American cities, none is so perfectly poised as San Francisco to lead the nation 
into the Century of the Pacific, and I suggest we do just that. 

From its earliest mercantile days, San Francisco has been the commercial center for 
a brisk trade to the Far' Fast, the Northwest and western South America. Foreign 
trade has comprised a large portion of our local economy. More recently, our 
business capability has been enhanced by branches of Asia's largest banks, and by 
Asian trading offices doing business here. 

These factors — our geographical location, our history, our exportable expertise :uid 
our large and active populations of Asian ancestry — make San Francisco truly the 
Gateway to the Pacific. And these same factors make it compelling that San 
Francisco remain that gateway city. 

All else aside, San Francisco's special affinity for the Pacific is crucially important 
because of three overriding considerations which should be factored into our thinking: 

1 — By the year- 2010, only 25 years away, sixty percent of the world's 
population will live around the Pacific Rim. 

2 — Each year since 1978, LLS. trade with the Pacific has exceeded trade with 
Fiu'ope. Asia hist year represented 31% of all U.S. trade, Europe 25"o. And that 
gap is growing. 



3 — America is rapidly shifting from an industrial economy to a service 
economy. Only recently President Reagan noted we have lost 1.6 million 
manufacturing jobs since 1979 — but gained 9 million jobs in service industries. 

Now, consider that San Francisco 1) has a prime location on the Pacific Rim with one 
of the world's great seaports, that 2) more than 35% of all California's trade passes 
through our Customs District, and that 3) San Francisco is already a prime West 
Coast service, commercial, headquarters and financial center. 

That gives you a very robust picture of the city's potential. But that picture will only 
be complete if we, as public leaders, are wise enough to fully develop the advantages 
we have inherited. 

New opportunities, new relationships and new business will not just come to us. We 
must reach out and create a favorable climate that welcomes and encourages 
international activity. And we must build and strengthen the facilities required for 
international uses. 

The stakes are high, both in money and in jobs. Every S40,000 in exports means one 
job. International trade means not only trading company jobs, but maritime jobs, 
railroad jobs, airport jobs — and even more numerous jobs in travel, service, financial 
and other trade related offices. 

Since 1979, we have worked hard to strengthen San Francisco's position as an 
international center. That work has found strong support in the City's large 
international community. We have extended our hand officially to dignitaries and 
delegations from around the world, and encouraged them to do business here. And I 
have made a number of trips abroad to solidify friendships — which have sometimes 
led to business, investment and trade relationships. 

The City has established sister city relationships with the Pacific Rim cities of 
Shanghai, Osaka, Seoul, Sydney, Taipei and Manila. Let me summarize a few things 
that have happened since: 

** After the San Francisco-Shanghai Friendship City agreement, China 
established its first American consulate in San Francisco. 

** china Ocean Shipping Company (COSCO) signed contracts with the Port of 
San Francisco. 

** China's Airline, CAAC, began flights to San Francisco International. 

** Agreements signed with both Shanghai and Guandong Province established San 
Francisco as their major base of economic and trade operations in the western 
United States. Today, joint ventures between Bay Area business and Shanghai 
are being put together by a special Shanghai liaison team headquartered here in 
San Francisco. 

** In Taipei last January, I signed a five-year agreement making San Francisco 
port-of-call for Evergreen Lines, one of the world's largest container shippers. 

These are just a few highlights of what has flowed from our recent Pacific 
relationships. There are others — and a solid foundation of friendship and trust upon 
which many more will be built. 



City officials can do much to encourage international activities here. Some of you 
have already made official visits to countries ahroad, and developed important 
friendships for San Francisco. We in government can also cooperate closely with the 
local commercial community to help it develop business abroad. 

1 believe we have entered a new era of internationalism. No longer are trade and 
world relationships the exclusive province of the State Department, the Commerce 
Department and the Special Trade Representative. 

Rather, cities, states and individual entrepreneurs are more and more actively 
involved. And the results are more and better relationships that can lead to positive 
economic and social results. 

San Francisco is now part of this emerging phenomenon. With the City government 
and our diverse community working hand in hand, we have charted new paths across 
the Pacific and around the world. 

I most strongly urge that this effort continue unabated. 

San Francisco's international participation should be encouraged to grow to its full 
potential. I firmly believe San Francisco's future is woven closely with those of its 
neighbors around the Pacific Rim, and that as the Pacific prospers we too will 

As once San Francisco built bridges to the East Bay and to Marin County, we are 
today building bridges across the Pacific. Electronic, maritime, airborne and 
people-borne bridges, but bridges no less. 

I believe the time has come for us to reach out to other countries in which large 
corporations are looking for investments and plant sites in the United States. This 
month I will launch a major initiative intended to attract Japanese businesses to San 
Francisco. It includes organizing an informal advisory council of senior executives of 
Japanese firms with offices here to act as advisors to my office in the pursuit of 
manufacturing and assembly jobs for our people. We will provide incentives for 
creating manufacturing plants within our borders, and we will help prospective 
companies to cut the ever-existent red tape that siutouikIs all we do. 

Supervisor Renne has indicated her interest in serving on this committee, and I would 
welcome any other supervisors who would like to participate. 

Six highly-attractive sites suitable for manufacturing plants have been identified 
within the city by directors of the Mayor's Office of Housing and Economic 
Development, Planning, Port and Redevelopment departments. 

My purpose in taking these steps is, once again, jobs. Mew plants could offer more 
blue collar and new collar job opportunities in San Francisco for a workforce that is 
ready and waiting. 

The competition for business and investment is intense — with many cities around 
the world already active. San Francisco's already-stated advantages, a large ;uid 
supportive community and our long-established friendships can help us in this pursuit. 

I invite you to join me in working with the Chamber of Commerce and other 
professionals to get our "Invest in S;ui Francisco" message to large firms both in this 
country ;md around the world. 


There you have it, the State of the City as we enter the final months of 1985. 
Another year of accomplishments hehind us. An urgent need to close a prospective 
hudgetary gap. A housing program well under way hut requiring a continued high 
priority. And finally, i world of potential in the Pacific. 

We continue to he a favored City, a city of opportunity. We know some prohlems 
remain, hut we :;lso know we can solve them — and that there is a concerned 
community out there watching to see that we do. 

I want to express my appreciation to this Honorahle Board, and to the people of San 
Francisco, for their support in the last year. 

Thank you. 


Office of the Mayor 
San Francisco 

October 6 1986 




OCT 7 1986 


I would like to begin my eighth State of the City message by thanking each 
member of your Honorable Board for the fine cooperation offered in so many 
instances over the past year. I recognize that the executive and legislative 
branches have certain problems over time and sometimes tend to view issues 
differently, but by and large my programs and budgets have been approved and 
individual members have been of great assistance. In return, I have tried to be 
sensitive to the needs of this Board and respectful of your prerogatives. 

The following announcements are, I believe, of interest to your Honorable Board: 

1) After careful thought, I am today sending to you my nominee for the next 
Chief Administrative Officer of our city — to replace Roger Boas, who for ten 
years has set high standards of excellence for himself and the office. I take this 
opportunity to share with you my reasons for the appointment. 

The CAO must work with both the executive and the legislative branches of 
government. Ten departments come under the CAO's jurisdiction: Public Works, 
Purchaser, Registrar, Recorder, Real Estate, Agriculture/Farmer's Market, 
Convention Facilities, Public Administrator & Guardian, Coroner and Electricity. 
Projects the CAO supervises are massive: The Moscone Convention Center, the 
billion-dollar Wastewater Program and the long-range solid waste disposal system 
all are major in their importance to the City. The build-out of the two blocks of 
Yerba Buena Convention Center, with its Gardens on CB-2 and additional exhibit 
and meeting room space below, and commercial development on CB-1 and EB-2 
need follow-through and continued supervision. 

The CAO must be able to put together and gain approval for the largest civic 
projects this City contemplates. The CAO must understand government, the 
Charter and the private sector. The CAO must be a strong administrator. 

After evaluating a number of qualified candidates, I believe the right person for 
the time is Rudy Nothenberg, and I ask for your approval of his nomination. 

Rudy Nothenberg has wide experience in government and an understanding of the 
business community as well as our neighborhoods. He is a tough and effective 
manager. He is familiar with large and small budgets, major departments and 
construction projects. He also has an interest and background in the arts and the 
important role of the cultural components of this City. I believe he will be a 
Chief Administrative Officer with whom both the executive and legislative 
branches can work, and whose "no nonsense" approach will get the job done. 

2) Next week I will submit to your Honorable Board a supplemental appropriation 
for $1 million in additional Muni Railway service on certain heavily-travelled 
routes in San Francisco. 

It will provide more Metro cars to service the Sunset District, added service 
on Van Ness Avenue and Mission Street, on crosstown, eastern and 
southeastern routes, including restoration of the # 58 Line. 

This is the first significant expansion of service in a long while, and will make 
buses less crowded and more frequent for thousands of daily riders. 

3) Let me bring your Honorable Board up to date on the long-stalled efforts to 
build housing on the site of the old International Hotel. 

A few months ago Four Seas, owner of the site, withdrew its proposal to build a 
mixed-use development which included 120 units of senior housing at rents of SI 
per square foot per month, exclusive of electricity, and fixed for five years. The 
stated reason, at the last moment, was that the commercial aspect was not 
sufficient to put the project in the black, and the owners did not wish to proceed. 

This default on an agreement negotiated over seven years by this office and a 
special citizens committee headed by Dr. Roland Lowe came as an overwhelming 
disappointment. Since that time I have met several times with the developer's 
representatives, attempting to find a way to build the housing, and had hoped to 
have an agreement by today. I have offered to recommend that the City buy the 
site from the developers at their cost, and also to put additional funds above the 
$1.5 million of Affordable Housing monies already committed to help subsidize 
the housing. These offers were rejected. The developer has proposed to amend 
his project, deleting the office, but simply providing air space for the City to 
build the housing. This is clearly not acceptable to either the Citizen's 
Committee or myself. 

The developer also insists that he be able to maintain his remaining Columbus 
Avenue property as part of the original permit to qualify for the exemption from 
the Downtown Plan "beauty contest," and build office space. This, the City 
Attorney advises, poses significant legal questions — and I do not believe it should 
be permitted without this developer's participation in the housing. In conclusion, 
despite negotiating which went through this past weekend, the developer still 
refuses to build the housing. Therefore, there will be no exemption from the 
Downtown Plan. 

After discussion with and support from the Citizen's Committee, I am today 
recommending that the Planning Department proceed with the longstanding 
proposed Chinatown Rezoning Program, which would rezone this property to 
residential with first-floor retail activities. It is clear to all of us that the 
greatest needs in Chinatown are housing and open space. Seven years is long 
enough to negotiate and too long to wait. We have reached a limit. Thus I am 
instructing the Director of Planning to apply the Chinatown controls which would 
limit both properties to residential neighborhood commercial use, a district in 
which only residential uses will be permitted above the ground floor. 

4) With this message today comes a promotional pamphlet on San Francisco, 
jointly funded by the Chamber of Commerce and my Office, which was prepared 
by our Office of Housing and Economic Development. This handsome booklet can 
help promote San Francisco nationally and internationally for new business 
relocations that can produce jobs here. 

I am now appointing a "Blue Ribbon Committee on Business," which will work with 
my office in promoting the City as a good place to do business, make 
recommendations and present programs which can enhance our reputation as a job 
producing center. At a time of numerous mergers, takeovers and consolidations, 
it is important that we draw upon our local business leadership to assert this city's 
best interests. 

5) Today I am submitting to your Honorable Board legislation to set aside $1.6 
million in recycled Urban Development Action Grants (UDAGs) to assist in the 
renovation of the Mission Armory into a major film production facility. 
Supervisors Walker and Molinari have indicated their interest in helping this 
project and have agreed to introduce the resolution for the recycled UDAG funds. 
The Armory recently has been obtained from the State by a local film producer. 
It offers the potential for 350 new jobs — largely blue collar. As the UDAG loan 
is repaid, funds will be generated and used for further economic development 
assistance in the Mission ... so the community itself will directly benefit. It can 
be a very good project and I urge your support. 

6) Earlier this year allegations of brutality to children placed in foster care 
homes by the Department of Social Services were brought to our attention. I 
immediately appointed a Blue Ribbon Committee headed by retired Superior 
Court Judge Frances Mayer. The committee's investigation revealed that sloppy 
and improper departmental procedures were contributing factors in six of ten 
suspicious deaths of children it studied. 

As a result, the Social Services Commission and department were directed to 
review all procedures, and to reorganize the Family and Childrens' Services 
Division, which administers care for hard-to-place youngsters. 

Today, I am sending a reorganization plan to your Honorable Board for review 
which is a supplemental appropriation for $734,000 for FY 1986-87 (Si. 2 million 
annualized). This supplemental will strengthen supervision in the Family and 
Childrens' Services Division and provide closer personal supervision for each child 
in foster care. Essentially, it adds 21 new positions, including management and 
supervisory personnel, and increases the number of social workers from the 
present 83 to 97, reducing the caseload of each from 27 to 23. A specific deputy 
general manager will have overall responsibility for foster home placements, with 
an assistant director in charge of each area of case management. As a child is 
received, placed and supervised, responsibility will be affixed. Also, an 
investigative position is created to check each child placement and to look into 
each allegation of abuse. 

The blue ribbon panel will continue its work and evaluate the effectiveness of this 

When all things are considered, San Francisco is strong and the State of the City 
is sound. 

— The City's budget is balanced and its services expanding. 

— More housing has been built in the last five years than in the entire decade of 
the 1970s. 

— Unemployment remains low, at 5.5% in August — while the state and nation 
were at 6.7%. Unemployment dropped one full percentage point here from August 
of 1985. 

— Crime in San Francisco has declined 24% in the last decade — and is down 
another 4.5% thus far this year. 

— Retail sales are on the increase — exceeding Si billion in the first quarter of 
this year. Sales are projected to reach about $4.4 billion for 1986 — a 7% 
increase over 1985. 

— Our number one industry, conventions and tourism, remains strong. The 
Convention & Visitors Bureau expects to total 3% to 5% more delegates this year 
than in 1985. Last year we had 2.6 million visitors — this year's total is expected 
to reach 2.8 million. 

In terms of the City's general and economic well-being, it is extremely important 
to understand how deeply we have been impacted by the continuing cuts in federal 
funding for social and other programs. Recently, a national report documenting 
$114 billion in cutbacks during the first five years of the Reagan Administration 
was issued by the American Federation of State, County and Municipal 
Employees. The cuts in service levels averaged 14.9% nationwide. 

San Francisco has not been spared these cutbacks. My office has concluded that 
in those five years the City lost $64 million in real dollars on only a partial Ust of 
programs. And beginning this month, we lose another $20 million annually in 
General Revenue Sharing funds — bringing the total loss of federal monies to a 
minimum of $84 million. 

Fortunately, prudent management has thus far enabled us to absorb these 
devastating cuts — while fully maintaining public services. As federal reductions 
continue, there must be increasing concern about our ability to bear the huge 
financial burdens of programs from which the federal government has withdrawn 
its support. 

In view of all the social problems, the poverty and the homelessness cities face, I 
find this domestic economic philosophy bizarre and mystifying. We are witnessing 
an economic shell game. In the guise of reducing spending, funds for the poor and 
the cities are slashed — while the budget deficit has soared beyond $200 billion a 
year and the national debt has reached mountainous proportions. 

Today, San Francisco spends more dollars per capita on housing and services for 
homeless people than any of the 15 largest cities in America. Spending this year 
will reach $9.8 million — serving 25% more people than last year. 

We house 2,500 individuals a night in a network of 31 hotels, and another 400 
nightly in shelters run by dedicated non-profit organizations — a program 
recently expanded by 90 beds. And 70 homeless families have been placed in 
Housing Authority units in a continuing program for families. 

Still, problems and needs remain to be addressed. Increasingly, we are seeing a 
sicker and more difficult homeless population — with more people coming from 
outside San Francisco. To meet new needs, the first major day care program, at 
the Episcopal Sanctuary, is now open. And St. Martin de Porres House of 
Hospitality, staffed solely by volunteers, will be operational on Thanksgiving Day. 

But, bottom line, San Francisco seems to have become a magnet — the more we 
do, the more we draw. It is clear that other counties must also do their share, for 
San Francisco is now at maximum capacity. 

Additionally, the State must play a greater role in helping mentally ill homeless. 
The theory of "deinstitutionalization and community care" which has been the 
genre for many years has, in my opinion, failed. The State has shut down more 
than 30,000 mental health beds, basically foisting the problem onto the cities 
without providing the resources to handle it. The law makes any involuntary' 
placement extraordinarily difficult. 

Others must now help. I welcome all constructive suggestions on program 
modifications in this, the most trying area of human problems. 

San Franciscans need and want more parking, and our efforts to provide it are 

To that end, six of the ten facilities I have asked the Parking Authority to build 
are in various stages of development. Construction has just begun on Lombard 
Street for a 212-stall garage with six retail spaces, and negotiations are 
proceeding for North Beach, Chinatown, Polk Street, Outer Mission, Inner Irving 
Street facilities. 

Additionally, the Police Department is actively enforcing downtown parking 
regulations, fifteen new meter personnel are being hired, and — with expansion of 
Muni service — there should be improvement. 

However, it should be pointed out that with declining gasoline prices more people 
are now using automobiles than ever before in the Bay Area. This is having a 
decided effect on congestion, and reducing the use of transit regionally. And 
people continue to buy cars — regardless of whether they have a place to put 

The Narcotics Task Force I appointed almost a year ago has been working 
diligently to increase community awareness about drugs. The Police and District 
Attorney are cooperating with the Department of Justice and the Drug 
Enforcement Administration in targetting major cases for federal arrest and 
prosecution. The Task Force's public efforts include: 

* Beefed-up enforcement action. Narcotics arrests are up 38% here in the first 
half of the year. 

* A 24-hour Narcotics Hotline — 553-1600 — has been established so that 
residents can report any drug dealing to the police — anonymously if they wish. 

* Public service announcements on television will encourage San Franciscans to 
"say no to drugs" and to report drug dealing by calling the Narcotics Hotline. 

* Brochures delineating drug treatment resources are being developed and made 
available to students, parents, neighborhood and business groups. 

* The Police Department and Unified School District are developing a drug 
education/prevention program for implementation throughout City schools. 

* Police personnel from the Community Services Division and Project S.A.F.E. 
have been trained to make drug abuse presentations to interested schools, 
neighborhood groups and pubUc agencies. 

* A Court Watch project has been instituted to monitor court proceedings 
involving drug dealers. 

* The SFPD will retain a portion of the assets seized in drug cases; to date about 
$200,000 has been generated through the program. 

* Plans are being developed to institute a drug educational and assistance 
program at Public Housing sites. 

* Pacific Telesis is providing a special sticker for phone books to advertise the 
Narcotics Hotline as well as numbers for help. The hotline will also be publicized 
on 800 Muni buses and on 100 billboards throughout San Francisco. 

* Special areas are being targetted for increased drug abatement activity. For 
example, Oceanview Playground, until recently inundated by narcotics activity, 
has been reclaimed by the neighborhood. Joseph Lee Playground is next for 
special attention. 

1 welcome active participation in these efforts by Board members. 

The attack on the AIDS epidemic remains the City's highest health priority, and 
the program forged here is the best in the nation. Nonetheless, the AIDS picture 
remains complicated and uncertain. AIDS cases in San Francisco are up 70% in 
the past 12 months — and up 81% statewide and 92% nationwide. Deaths are up 
88% here, 117% statewide and 110% nationwide. 

Recent studies indicate San Francisco and the nation will be faced with increasing 
incidence of AIDS in the heterosexual population — spread both through 
intravenous drug use and sexual activity. The Health Department is preparing a 
major educational drive aimed at alerting the heterosexual community to the 

Until very recently there has been little hope. But recent advances indicate there 
are now certain drugs which trials have shown will prolong life in AIDS cases 
where symptoms are Pneumocystis pneumonia. I strongly believe that the battle 
is far from over and that we must vigilantly and carefully evaluate and amend our 
programs as medical knowledge becomes available. 

During the past year, we have been able to secure a commitment from Santa Fe 
for 14 acres of land at 7th & Townsend Streets, to be leased to the City at $1 a 
year, for a baseball stadium. 

Unfortunately, costs continue to escalate and at present there is no way to 
finance a S69 million ballpark unless the City is willing to underwrite the costs 
through a bond issue. I do not believe the people will approve the use of 
significant amounts of General Fund monies, and I know the Board will not — at 
least thus far. 

For several years, I have appealed for an "angel," a grant, or a private sector 
commitment of dollars to permit a bond issue low enough to be amortized by 
revenues from the stadium. To date, no major private gift or commitment has 
been forthcoming. Though we are continuing our efforts to develop an acceptable 
financing program, I have no positive news to report. 

Meantime, the Candlestick renovation project is proceeding with very favorable 
comment. By 1994, it is estimated Candlestick will become a substantial 
generator of revenues for the City. 

As it has been for years, affordable housing is still the number one issue in San 
Francisco. Our efforts have been and are directed to bringing as many units on 
bine as possible. In the last five years, about 8,000 housing units have been built 
or are underway in the City, and through City financial assistance another 7,000 
units have been rehabilitated. 

Innovative City programs have proved to be the key to building and rehabilitating 
these 15,000 units in the last half decade. Without these special new programs — 
like the Office Housing Production Program and Mortgage Revenue Bonds with a 
shared appreciation pool — it could not have been done. As part of these 
programs, the City and Redevelopment Agency sold more than $300 million in 
tax-exempt mortgage revenue bonds in the last year to finance 3,000 new 
apartments — including the 1,100-unit Filmore Center and the Winterland 
Apartments. The program to develop affordable homes on surplus public sites will 
take another step forward early in 1987 when construction begins on 203 units on 
the Balboa Reservoir and 114 units at the Polytechnic High School site. Again it 
must be pointed out that the City provided the land free to permit sales prices on 
the homes to be as low as possible. 

I frankly see Mission Bay, Santa Fe's in-town community — with its 7,500 units of 
housing — as vital to our effort. At least one third of the housing units — about 
2,500 — will be affordable, with developer contributions and tax increments 
provided to reduce costs — another innovative step. 

In January, I published a report on housing programs, which is attached for handy 
reference. As is shown, we have made a good start, but we must continue to 
develop innovative approaches to increase the building of affordable housing. 

Several key measures on the November ballot are worthy of comment. 

Proposition "A" is this City's first General Obligation Bond since the passage of 
Proposition 13 in 1978. Its passage is vital to the development of an underground 
water system adequate to fight large fires in the event of a major earthquake. 

Proposition "B" would enable San Francisco to remain competitive in our number 
one industry: conventions and visitors. With the passage of "B," 330,000 square 
feet of exhibit and meeting room space can be built underground on the central 
block of the Yerba Buena Convention Center. 

Proposition "H" deals with comparable worth, an issue which has been a major 
point of contention between myself and the Board. This ballot proposition is the 
result of our agreement on the issue. I believe it provides for a legal comparable 
worth program for San Francisco's public employees. I am pleased to add my 
support for this measure. 

Finally, I urge defeat of Proposition "M," which purports to close "developers' 
loopholes" but in reality would hang a ball and chain around any major project this 
City contemplates and could jeopardize a variety of projects in the 
neighborhoods. Its citywide application would stop both Mission Bay and 
Executive Park. 

Most people recognize that the electorate wishes greater controls on Downtown 
commercial office highrise, and the Downtown Plan is in fact doing just that. 
1986 wiD become the first year in a very long time in which no new office 
buildings whatsoever have been approved. Let's give the Downtown Plan a chance 
to work. 

I am flabbergasted to learn that members of this Board, supporters of Proposition 
"M" whose campaign materials say they want to "close developers' loopholes," are 
seeking a special interest developer loophole for Executive Park at the Planning 
Commission on October 16th. This really shows that "blanket" measures have real 
problems. We all agree that growth should be curbed in the downtown triangle, 
but each neighborhood is different in its needs — and Prop M in its citywide 
application is sure to present obstacles to neighborhood plans. The special 
exemption sought by supervisors after placing "M" on the ballot is a good case in 

At this time, each and every member of this Honorable Board is invited to join me 
in a campaign to help promote San Francisco as a good place to do business, to 
employ people and to provide jobs. Please review the attached, updated 
"Economic Overview," the earlier edition of which was sent to the Finance 
Committee in June. 

Let us unite to revise what is a growing feeling in the business community that 
San Francisco's officials do not care. To this end, we are pleased to make 
available promotional materials on our City and to help with presentations. I urge 
all the positive help you can offer. 

San Francisco has lost between 20,000 and 30,000 jobs in the last few years as 
large employers sought to reduce costs by locating in suburban areas. 
Fortunately, the job loss has been thus far compensated for by a 13% increase in 
small businesses since 1981, and by market forces lowering office rents due to a 
growing vacancy factor. Consequently, there has been a net gain of 4,500 jobs. 
Companies like PG&E, Delta Dental, First Nationwide Savings, Sumitomo Bank, 
Charles Schwab & Co., U.S. Leasing and the Federal Reserve Bank are finding 
that they can expand now in San Francisco — at rentals comparable to or below 
the competition outside the City. 

Although San Francisco has seen about 300 new companies start up during the 
first six-month periods of 1985 and 1986, business failures here increased about 
25% in the first half of this year (to 124 from 99). Mergers and acquisitions have 
adversely affected the corporate business status of our City, resulting in a 
reduced number of corporations headquartered here. Troubles of the Bank of 
America could also have broad civic ramifications. And finally, many business 
leaders tell me that they are troubled by what they see as the negative actions 
from City Hall: legislation combining with ballot propositions to form an 
anti-business impression. 

Despite all of this, we have much to recommend the City, and the business 
promotion brochure stresses these positives. Additionally, the Mayor's Office of 
Housing and Economic Development is prepared to provide direct services to 
companies wishing to do business here — to walk their permits through and to 
solve any problems that arise. And of course it is most important that we offer 
help to firms already here who wish to expand or find new facilities. For 
example, we are now working to relocate the Esprit Corporation so that the 
company and its nearly 2,000 employees, now in six different locations here, can 
consolidate operations into one world headquarters, remain in San Francisco and 
expand their employment base. 

In the last five years San Francisco, through the Office of Housing and Economic 
Development, has given financial assistance to 248 small businesses — retaining 
about 3,000 jobs here and creating 1,500 new ones. Six loans, for example, went 
to six small craftsman who lost their businesses in the Bayview Industrial Park 
fire last spring. The food firm Just Desserts was started with the help of a small 
City loan, and now employs about 200 people. With a $40,000 loan the Good Life 
Grocery was able to remain on Potrero Hill after it was displaced from its original 
location, and it's now prospering. And a real success story is the H & N Fish 
Company, which was started by a Vietnamese refugee who borrowed $41,200 from 
the City in 1983 and is now one of the largest wholesale fish distributing firms in 
the City. 

This clearly shows the importance of active and innovative programs. I thank this 
Board for your support of these programs. It has been 100%. 


When last year's message was delivered, you may painfully remember, San 
Francisco faced a $76 million budgetary shortfall. We had just instituted a 
number of money-saving measures, and we were carefully evaluating all City 
expenditures and putting together a fair-share revenue package to present to the 

That program has worked, and we have come a long way since then. The Fiscal 
1986/87 budget presented in June is balanced and fiscally sound. It preserved all 
services, expanded some, avoided threatened layoffs and reduced the number of 
City employees by 227 from 24,170 to 23,943. 

In addition, we were able to establish an $8.3 million contingency reserve in 
anticipation of more federal cuts, and add another $3.4 million to the emergency 
reserve fund. We also funded an after-school recreation program, created a $3 
million economic development fund and provided $1 million for Community 
Development, $1 million for the Housing Authority, an added $1 million for AIDS 
and $650,000 for the Emergency Medical Service (ambulances). 

The City's ability to lower its property tax rate from $1.14 to $1.11 this year is 
very good news. A miniscule 3 cents isn't much, but it also isn't a tax increase — 
for which we can all be grateful. 

I look forward to working with the Board of Supervisors and serving the people of 
San Francisco in the next year. I thank the people, and the Board, for their 
support in the last year. 




** An "Economic Overview of San Francisco," October, 1986 
** San Francisco Business promotion brochure 
** "A Progress Report on Housing" 

Office of the Mayor 
San Francisco 


October 5 1987 




With this, my final State of the City message, I want your Honorable Board to know how 
much I have enjoyed working with you these past nine years. We have agreed and 
disagreed — but always respected each others' prerogatives and moved forward together 
for San Francisco. I am proud of our constructive relationship — and hopeful the mayor 
who succeeds me will be as fortunate. 

As you have heard me say many times, cities are basically places of opportunity — and 
seeking to provide that hope and opportunity has been a dominant thrust of my 

During my years in office, the economic health of the City and the people who live here 
has consistently been my highest priority. Strengthening and diversifying the economy, 
putting together a model AIDS program, helping the homeless, finding new jobs and 
housing, seeking business in the Pacific Rim, encouraging entrepreneurship — everything 
my administration has done was conditioned on improving the quality of life for San 

The economy has strengthened steadily here during the last decade. The unemployment 
rate declined from 6.3 percent to the current 4.7 percent — well below that of the state 
(5.4 percent) and nation (5.7 percent). Per capita income rose 2 percent a year to 
$21,219 — now the highest of all major cities in the nation. Trade in our renewed retail 
sector increased 4.5 percent a year — though last year's rate flattened to 2.1 percent, a 
possible danger sign. Conventions and tourism, our number one industry which sustains 
60,000 jobs, gained 4 percent last year. 

The City's own fiscal structure remains sound — with enterprise departments like the 
Airport and Port doing better than ever, the City's financial reports winning awards for 
five consecutive years and a bond rating that has gone from a suspended status in 1979 
and steadily improving to its current solid AA1. 

We have managed to break some monumental logjams in recent years: Yerba Buena 
Center is now under construction; the Fillmore Commercial Center's 15-year deadlock 
was broken and construction is under way, and ground will be broken this month on the 
International Hotel site after 12 years of challenge and controversy. In addition, 
thousands of new housing opportunities have been opened on long under-utilized public 
lands, through re-zoning and other methods. 

In these years, this city has not been afraid to take bold steps in new directions — or to 
prudently propose and impose new revenues when they were needed, or cuts when they 
were justified. 


Mar.'86 Jun/86 Sep/86 Dec.'86 Mar/87 Jun.'87 

Source: California EDD, Employment Data & Research. Not seasonally adjusted. 

I am deeply indebted to my staff for its excellent performance during my tenure, and to 
the City's department heads — whom I consider the best in America. We have been 
through some difficult times and accomplished much together that improved the 
government and the public services it provides — always with a great spirit of 
cooperation and collegiality. 

Again, it is my hope that future administrations will continue the kinds of 
bread-and-butter priorities that are so essential to the lives of San Franciscans, and 
which are all part of the patchwork of hopes and dreams for the City we all love. 

Now, as the time nears when someone else must take the civic reins, let me give that 
person, the Board and the people of San Francisco my final report — including many new 
developments, current updates and progress on some of the major programs, processes 
and problems. 

A Fresh Look for Civic Center 

San Francisco's Civic Center is the jewel in our crown. No other American city presents 
its government, education and arts buildings in such a stunning architectural array. 
Unfortunately, the historic "City Beautiful" concept has never been completed. Now, 
after several months of reviewing technical studies, future needs and financial 
feasibility, we are able to consider Civic Center improvements that can meet some 
pressing requirements while enhancing our civic heart. 

Specifically, 1 propose a New Main Library — to meet long-obvious needs for space and 
modernization — on Marshall Square, at the southeast corner of Civic Center. 

A great library is a measure of a great city. Extensive reviews have shown that while 
the existing structure could be renovated to meet library needs into the next century, 
renovation would be extremely expensive — costing nearly as much or more than new 
construction -- and offer no flexibility or room for expansion. In addition, renovation 
would essentially shut down the Main Library for two years -- an unacceptable option for 
a facility that services 3,000 citizens daily. 

A new building would not only meet the needs of our library but also allow for 
expansion. The cost of a new, 440,000 square foot building — one that befits Civic 
Center — is estimated to be about $70 million, which could be paid for by a combination 
of state and local bonds, private contributions and a public subscription campaign. 
(General Obligation bond: $30 million; State bond allocation: $25 million; private 
fundraising: $15 million.) The General Obligation bond issue could include monies for a 
pedestrian mall on Fulton Street and restructuring Civic Center Plaza, and will be ready 
for placement by the Board on the June or November 1988 ballot. 

The vacated Main Library building can be seismically strengthened and renovated for use 
as either a new Asian Art Museum or a civil courts building. It could accommodate the 
civil courts, clerks offices, bailiffs and law library for the present, but not into the 
future. In order to meet our total needs into the 21st Century, we are currently 
assessing possible sites for a building that would combine Municipal and Superior courts 
in the Hall of Justice area. A consolidated courthouse could serve the courts, their 
support services, the police and the public more efficiently. Several financing options 
are possible for such a $60 million project, with significant savings possible from use of 
the reclaimed space in City Hall. 

If the courts can be advantageously located elsewhere, I propose that the old Main 
Library structure be used for a new Asian Art Museum, with a pedestrian mall linking it 
with the new Main Library along Fulton Street to increase the vitality of Civic Center. 
The museum's estimated $25 to $30 million renovation cost could be raised in the private 
sector, with help from a November, 1988 bond issue to correct seismic problems. Moving 
the Asian Arts Museum also offers another major plus: it would finally open up expansion 
space needed for the Fine Arts Museums in Golden Gate Park. 

We are also looking into the need for a new office building in the Civic Center area — 
since we now spend $3 million a year renting scattered spaces for City operations, which 
is costly, duplicative and inefficient. 

These proposals — which will be presented in greater detail within the next few weeks 
— may also involve numerous other elements, including extending the Civic Center 
Plaza to include a pedestrian mall between the new and old main library buildings, the 
restructured Civic Center Plaza, increased off-street parking, reconfiguration of the 
Brooks Hall ramps, possibly a city history museum and cultural uses of the remaining 
space adjacent to Davies Symphony Hall. 

The City's Fiscal Health 

By necessity, budget considerations have had the greatest impact on my tenure as 
Mayor. Nine years ago last June, California voters passed Proposition 13 — the "tax 
revolt" which cut municipal property tax revenues in half and removed any possibility of 
increasing taxes in the future. These post-Proposition 13 years have weighed heavily on 
all public resources, and have greatly altered the budget process in City Hall. 

It is important that the Board — and the public — know that financial concerns now 
must get full-time, year-round attention from the mayor. In the pre-Prop 13 "good old" 
days, revenues were assured by simple mathematical computation of the property tax — 
and the mayor did not have to balance the budget prior to its submission to the Board of 
Supervisors. No more. Today, the budget is no longer a dormant document. It requires 
day-to-day management, with income and outgo a constant concern. 

Structuring the annual budget is the predominant activity of the Mayor's Office, as it 
must be balanced by the mayor prior to submission to the Board — and this has become 
increasingly difficult. The budget itself is the essential instrument of public policy, 
carrying the program priorities for the next fiscal year. 

These are also the Reagan years — compounding budgetary headaches. This city has 
suffered federal fund cuts of more than $100 million in the last five years, as well as 
reduced state funding. Absorbing such revenue losses — on top of Proposition 13's — 
has also been an unrelenting preoccupation, and may continue to be. 

In short, controlling the municipal checkbook is a fiscal imperative from which there can 
be no escape. This will be the primary challenge to my successor: maintaining and even 
expanding services within rigid financial constraints. 

Thus far, San Francisco has weathered the fiscal storms well, and emerged a stronger 
city for it. We moved from the desperate financial crises of Proposition 13 into several 
years of surplus to the present — with a budget that is solidly balanced, maintains all 
services and increases some. 

Recent projections for the fiscal year beginning next July 1 — FY 1988-89 — have 
placed clouds on our fiscal horizon, indicating a $76 million revenue shortfall — a 
projection driven by 1) an expected drop in Hetch Hetchy revenues, 2) increased costs for 
pay equity, 3) increases in police and firefighter salaries as result of Proposition I's 
passage last November, and 4) the many mandatory cost increases — amounting to $40 
million — in areas such as General Assistance ($7 million), Worker's Compensation ($9 
million), Fire Department staffing ($4 million), staffing for toxic and hazardous waste 
programs ($1 million), increased staffing for jail overcrowding for the Sheriff (SI. 8 
million), increased Police and Fire salaries due to passage of Proposition I last year ($15 
million), judgments and claims ($1.5 million), and increased elections ($1 million). 

The Controller's projections note that the Gann limit will prevent us from raising 
sufficient revenues to support the expected growth of expenditures, hi FY 1988/89, 
revenues can increase just $68 million. Mandated pay equity ($24 million) and regular 
salary standardization ($40 million) would total $64 million — and bump hard against the 
$68 million limit. Thus even if the City can increase its revenue base substantially, 
something will have to give on the spending side to avoid the Gann limit — or voters will 
have to be asked to suspend the limit, which is also fraught with problems. 

When I took office, a shortfall of $120 million had been predicted — and two years ago a 
similar $76 million shortfall was predicted. These shortfalls never materialized because 
we took steps to prevent them, and I and future mayors will do so again. 

I am pleased to announce that we have lobbied the State successfully and the Governor, 
last week, signed bills which effectively will bring $10.2 million in additional dollars to 
the City. I am directing that any monies not budgetted for this year be placed in a 
special reserve account for the next fiscal year. 

I have also taken certain prudent steps to control costs as much as possible in this fiscal 
year, and thereby to help increase the year-end closeouts: 

1) Effective September 14th, all supplemental appropriation requests are being held — 
excepting only those involving true emergencies. 

2) All discretionary spending is being reviewed with the intent of delaying expenditures 
not immediately needed. 

3) Personnel expenditures, through the requisition process, have been separated into 
essential and non-essential categories. Non-essentials are being held as 
appropriate. We are also evaluating the wisdom of increasing salary savings 
requirements by 1% to 2% across-the-board. 

4) As you will recall, I negotiated a reduced cost Comparable Worth agreement. I now 
believe we should look to further reduce these costs to avoid future personnel 

5) The $850,000 funding of the 1987/88 Mayor's In-School Youth Program will 
tentatively be withheld — a painful step for me. Having created the MISY program, 
I believe in it strongly, and will restore funding if possible. 

6) All special fund balances are being examined so that non-essential expenditures can 
be held. 

7) Equipment accounts which are non-essential are being reviewed. 

8) Balances in multi-year project budgets which are not direct public service are being 
reviewed, e.g. computer projects. 

9) Use of Transit Impact Development Fees to defray appropriate and legal costs 
currently borne by the General Fund is being reviewed. 

10) The Modesto and Turlock Water district and PG&E contracts are being evaluated. 

11) A financing of jail modular units, rather than expenditure of $6 million upfront, is 
being analyzed with a view toward saving several million dollars that can be used in 
FY 88/89. 

12) The impact of financing major Hetch Hetchy capital improvements by revenue bonds 
rather than paying for them outright, the current practice, is being analyzed. 

13) The feasibility of seeking state legislation to allow retirement costs to be placed 
outside the tax rate is being evaluated. 

14) Civil Service has been asked to adopt the tightest possible stance in negotiations 
with employee organizations in formulating salary standardization for 1988/89. 

15) I have asked the Board not to consider additional ballot measures that would 
increase costs. Ballot measures already passed are part of the reason for negative 
projections for the next fiscal year. 

16) All General Fund travel is frozen, effective September 14, 1987. 

It will be essential for the next Mayor to persist in efforts to balance revenues and 
expenditures. Among the largest concerns which must be addressed are: 

General Assistance — Some steps have already been taken to reduce the caseload, which 
has grown dramatically in the last year. Specifically, workers have been assigned to help 
move eligible clients from GA to Supplementary Security Insurance (SSI), and to remove 
clients not searching for jobs. We will take additional actions to reduce the caseload, 
but close management of this program is likely to be an ongoing challenge. 

Proposition R — Termination of Residential Utility Users Tax — The loss of $10 million 
produced by this tax would be a terrible blow at a time when we are struggling to 
maintain services and when financial shortfalls are being forecast. I urge all of you to 
join me in opposing Proposing R on the November ballot. 

Proposition Q — Minimum Firefighter Staffing — This measure is unnecessary for public 
safety and for prudent manning. It would increase costs by over $15 million, and 
eliminate the power of the Mayor and the Board to review and control equipment costs. 
Again, I urge you to oppose Proposition Q. 

Pay Equity — It is essential we seek to renegotiate the second year of the pay equity 
agreement. The only alternatives to reducing pay equity costs next year will be 
reductions in the workforce or freezing salaries. 

I am convinced the people of San Francisco appreciate the high level of services they 
receive, want them continued and are willing to pay for them. It is imperative that the 
new mayor and the Board work together cooperatively to maintain these services. This 
should be an unshakable goal — as it has been mine. 

Competing in a Global Economy 

The San Francisco Bay Area is at an economic turning point, and its ability to compete 
for business will be sorely tested in the years ahead. The explosive growth in the Pacific 
Rim economies has excited competition as great as the economic opportunities it offers. 

My trips to the Far East have laid the groundwork for business development, and made 
San Francisco many business friends in China, Japan and Hong Kong. But those trips 
have shown me that other areas of the country have been more organized and more 
aggressive in pursuing new business. 

The Bay Area is the Number Four market in the United States, destined to become 
Number Three in the next dozen years. Yet this rich market has no single voice to speak 
for it, no agency whose business is new business, new money and new jobs. 

The time has come for Bay Area counties and cities to end parochialism and work 
together. What benefits one Bay Area city benefits all. We must begin to think 
regionally, and to reach out as a unified economic community. 

Today I propose that an Office of Economic Development be established within ABAG — 
the Association of Bay Area Governments — to create an effective clearing house for 
the area's economic interests. Such an agency should be and can be fully staffed and 
funded by ABAG. with its own director and resources sufficient to collect and collate 
data indispensable to all of us and to those who may seek to invest here. We, and the 
rest of the world, need to know what this area has to offer in land prices, rentals, 
services and resource and industrial capabilities. 

If the Bay Area is to reach its full potential in this era of unprecedented growth in the 
Pacific, we must not compete with each other — but unite to compete as a region in 
today's global economy. 

Over the years, San Francisco's private sector has remained remarkably healthy and 
diversified. A back-office exodus which cost thousands of jobs in the early 1980s has 
now levelled off — and there are signs it is even reversing as space here becomes 
cost -competitive with the suburbs. 

More significantly, San Francisco is emerging as the most dynamic city for new business 
starts in America. Dun and Bradstreet reports we have a higher percentage of business 
starts and fewer failures — five business starts for every failure — than any major city 
in the nation. 

Business startups jumped more than 16 percent in the first six months of this year — 
while those throughout California rose only 5.3 percent and nationally declined 8.1 
percent . While gains in retail and service sectors led the way, business starts in 
manufacturing increased more than 96 percent — reversing a steady decline. See chart 


First six months 1986 and 1987 

Sector 1987 1986 











40 7% 


27 278 


■9 6% 

Reta'l Trad* 




Retail Trad* 




VVholeeale Trad* 




Wholeaal* Trad* 




Flnanc*, Insurance & 
Real Eatat* 




Flnanc*, Inauranc* 
Real Eatat* 




-2 1 






96 4 
-8 2 




-6 2 












-8 1 

Sourot: Dun 4 Btt&lr—I Corp 

Economc Antiym Dwvrrrwm 

Our diversified economy has generated jobs for all segments of the City's workforce, and 
helping to maintain it has been our goal. That effort will also challenge the next mayor. 
In the coming years, a concentrated drive will be required to retain our present 
employment base and attract new employers — particularly those in the emerging "new 
collar" light industries, research and development, biotechnology and other creative 
enterprises — the focus of new job growth. 

While seeking to attract new employers and industry, we have continued to assure the 
competitiveness of our convention and tourist industry. Implementation of Proposition 
B, which authorized the expansion of the Moscone Convention Center, is on schedule. 
Amendments to the Yerba Buena Gardens agreement with Olympia & York are expected 
to be finalized shortly and construction is due to begin late next year. When completed 
in 1992, the expanded facility will double the current usable space and mean $180 million 
a year to our economy. This vital project will insure that San Francisco retains its share 
of the nation's convention market and remains America's number one travel destination. 

On the most immediate horizon, homeporting the USS Missouri's 11-ship battlegroup at 
Hunter's Point — now firm City and Navy policy — offers the promise of 7,000 jobs in 
the Bay Area, with 500 jobs in ship repair here, diversified craft training for young 
people and many millions in new dollars for the City. Homeporting the Missouri's fleet 
brings with it the hope of reviving the ship repair industry here — which once boomed 
with 10,000 workers. 

We must also further position the City to benefit from increased opportunities in trade 
and foreign investment in an ever-expanding international economy. Oregon and 
Washington have pushed hard in these areas, and revision of the infamous Unitary Tax 
two years ago opened windows of opportunity for foreign investment in manufacturing 
here in California. 

In the last year, with support from your Honorable Board, we have taken the following 
steps to keep jobs in the City and attract new ones: 

— Mayor's Blue Ribbon Business Committee : This 47-member committee appointed 
last December has been meeting monthly to recommend ways to improve the 
business climate and retain and attract jobs. Under its auspices, a nonprofit 
economic development corporation and concerted promotional campaign — 
described below — have been developed. 

— Mayor's Office of Housing and Economic Development's Business Assistance 
Center : With the Board's support in adding four new staff positions, this office is 
now providing a full range of economic development services, including: 

+ marketing strategy and materials development 

+ site selection assistance 

+ economic research and information 

+ permit and regulatory assistance 

+ small business information and loan program 

+ below-market rate financing assistance 

+ Pacific Rim business opportunities program 

— Nonprofit Economic Development Corporation : My office and the Chamber of 
Commerce are establishing a public/private corporation to serve as the principal 
vehicle for business promotion and attraction. This includes an Ambassador 
Program , under which private companies provide host committees, technical 
information and assistance, and trade missions. Twenty-six companies have signed 
on so far. 

— San Francisco Film Advisory Council : A 15-member council was established in 
February to encourage development of the film and video industry here — already a 
$100 million-a-year enterprise. We have agreed to set up a film coordination and 
permit unit within MOHED which will centralize permitting for all film endeavors. 

— Real Estate Industry Task Force : A 10-member group of commercial and 
industrial realtors headed by Peter Pike of Damner-Pike was appointed in April to 
work with my staff in tracking trends in space availability and cost, identifying sites 
and providing an "early warning system" for business relocations. With the help of 
this group, I have been sending letters of welcome and offers of assistance to every 
new or expanded company. 

— C.E.O. Contact Program : One-on-one meetings by City and business officials 
with chief executive officers of major employers to ascertain their needs and see 
what can be done to accommodate them by the City and business community. 

— San Francisco Promotion : A program backed by the Blue Ribbon Committee, the 
Chamber and my office, working with local advertising agencies led by J. Walter 
Thompson and management consultant Edgar, Dunn & Conover, is being developed to 
promote San Francisco as a business center of the future through market research 
and promotional programs. My office has produced the City's first promotional 
brochure and audio-visual film — in both English and Japanese. With the Small 
Business Advisory Commission, we will publish later this month a "nuts-and-bolts" 
guide to doing business in San Francisco. 

In the last five months, more than 100 businesses have contacted the Mayor's Office for 
help in locating here, in financing and in acquiring permits. We are now helping a 
printing company with 70 employees and a garment manufacturer with 100 to move 
here. And we have helped Banana Republic find a site enabling it to stay in the City 
with its 350 employees. Also, meetings are being held to find an anchor tenant for the 
Bayview Square Shopping Center at Evans and Third Streets in Hunter's Point. 

Recently, I led a delegation to Japan for a week of meetings and seminars there with 
medium-sized growth companies in consumer electronics, apparel, food processing, 
pharmaceuticals and high technologies. We contacted more than 250 firms, and expect 
return visits here by many. In addition, both the City and Prefecture of Osaka next year 
will open San Francisco liaison offices — joining those recently opened by Shanghai and 
Guangdong Province. 

Japan's largest manufacturer of quality children's clothing and accessories will be 
opening its first U.S. store here in December. And the largest tailor in the world, 
Princeton of Hong Kong, recently opened a modern three-story outlet on Howard Street 
adjacent to Yerba Buena Center. 

A vital component in our economic mix is the Port of San Francisco — essential to 
attracting the Pacific Rim's expanding commerce. Its modernization has, in just the 
past two years, attracted five new shipping lines — with container tonnage jumping 80 
percent from 1985 to 1987. Steadily increasing cargo and passenger traffic justify the 
Port's continuing investment in maritime facilities. 

We must recognize that our economy is part of the nation's fourth largest market area 
— likely to replace Chicago in the number three spot by the year 2000. Obviously, not 
all businesses can locate in the City, but we benefit by business activity throughout the 
region. Our marketing efforts are geared to showcase San Francisco as the hub of this 
burgeoning regional economy. I am pleased that the three leading mayoral candidates 
have embraced this broadened perspective. 


A Permanent Plan for the Homeless 

A few years ago our country became conscious of a new phenomenon: homeless people. 
At first regarded as an emergency situation, it has since become apparent that America 
now has a large number of people who are outside our normal systems, impoverished, 
often physically or mentally handicapped, unable to cope and with no roots or housing 

San Francisco has more than its share of the homeless problem and has been extremely 
compassionate and generous — now spending $8 million a year on its homeless programs. 
This and every other city have struggled to find solutions, and no issue has consumed 
more of my time, concern and energy. 

Clearly, our present reliance on transient hotels has not broken the cycle of dependency. 
These people need long-term help in sustaining themselves, and they need permanent and 
affordable housing. A bed for the night and a free meal doesn't do it. 

These tragically dependent people are a melting pot of human ills: social, mental, 
economic and health. Most are inadequately educated for today's world. I have spent 
time with them, and my staff constantly works with both the people and the programs 
designed to help them. Recently the staff interviewed the heads of 64 homeless 
families. When asked, 80 percent said they wanted to work — but most are unskilled and 
unable to work for one reason or another. Forty percent had held more than ten jobs, 41 
percent had held jobs six months or less — and a solid 80 percent said they would like job 
training. While 32 percent were born in the City, about the same percentage had been 
here a year or less. 

Now, after several years of experience the City, through the Department of Social 
Services, will be moving to make changes in the program aimed at breaking the cycle of 

We believe this can be accomplished by helping homeless people, once they enter the 
system, to receive the diagnostic support and counselling necessary to move them into 
alternative but more stable housing. The program is being developed on a three-tiered 
basis: 1) basic shelter, 2) full service shelters, and 3) housing with counselling and 
psychological support appropriate to individual client needs. 

The Social Service Commission has adopted a concept program that is now in the process 
of implementation. Homeless people will have a 24-hour place to stay while getting help 
to find the jobs and permanent housing to enable them to be independent. When 
necessary, they will also be taught basic living skills: planning budgets, caring for 
children, preparing meals. In short, the program will help them not simply to survive — 
but to get back on their feet. My office is also preparing a survival guide for low income 
persons which will explain how to manage money and buy cheaply. 

As in the past, the homeless program will give top priority to families — which in my 
view are most urgently in need of help because of the children. To assist, the Mayor's 
Office of Housing and Economic Development has committed $1 million to help the 
Salvation Army develop a shelter for 35 homeless families, and the Housing Authority 
has rehabilitated 120 of the 190 units of housing allocated to homeless families with 
children. Federal homeless and Community Mental Health Services monies, as they 
become available, will be allocated and monitored by the Office of Community 
Development. The Mayor's Homeless Fund is used to purchase household supplies and 
furniture for homeless families. 


We have come a long way in our efforts to help the homeless in the last five years, and 
have now refined the program to the point where it can become increasingly effective in 
breaking the cycle of homelessness. 

Reforms in Caring for Neglected and Dependent Children 

Fifteen months ago, after several foster children under the City's jurisdiction died 
tragically, I appointed a Blue Ribbon Committee on Foster Care to review the complex 
problems of the child welfare system — which has seen its caseload quadruple in recent 

In August of last year the Blue Ribbon Committee issued its report, with 12 
recommendations. While many of the recommendations are comprehensive and difficult 
to implement, I am pleased to report all have been put into place over the last eight 

The Blue Ribbon Committee's key recommendations, now in operation, are 1) funding for 
a full-time investigator of child deaths within the Department of Social Services; 2) 
creation of a Critical Incident Review Board; 3) augmenting and reorganizing the child 
welfare division; 4) a thorough evaluation of our emergency shelter system; 5) training 
for line workers in policies and procedures, and 6) a special effort to recruit foster 
parents for medically fragile and special needs children. 

The Task Force on Dependent Children, a special group of department heads and private 
experts I appointed in April, reported its findings in August. Those recommendations, 
which have now been implemented, include 1) plans for a centrally-located intake 
facility for abused children at S.F. General Hospital; 2) private funding for volunteers to 
assist the courts; 3) a memorandum of understanding and protocols for more coordinated 
investigations of neglect and abuse reports; 4) establishment of a residential facility for 
disturbed children, and 5) improved schooling for children in shelters. 

In the eight months we have been implementing the recommendations of these two 
groups, there have been no reports of preventable deaths of foster children in our care. 
A copy of the Task Force Report accompanies this message, and I urge all of its 
recommendations be implemented. I commend the committee and task force for a job 
well done. 

The Escalated Battle Against Narcotics 

Drug trafficking in San Francisco, especially the sale of "crack" cocaine, has reached 
alarming proportions. In August, we launched an intensified attack on narcotics peddlers 
by the S.F. Police Department, District Attorney, Drug Enforcement Administration, 
U.S. Attorney and State Bureau of Narcotics Enforcement — more than doubling San 
Francisco manpower from 53 officers to 117, for a citywide 24-hour-a-day attack on the 

Action has been focussed on Public Housing projects, where law-abiding residents are 
terrorized by drug-pushing outsiders and their criminal clients. 

Since July, the systemetized, coordinated push has achieved significant results: 1,085 
narcotics arrests, including 28 parole violators, $156,000 seized and 37 guns confiscated. 
And of special significance: 178 complaints to the Police Narcotics Hotline — 553-1600 
— resulted in arrests. 


Drug dealers now know the heat is on — and it is going to stay on. We have made it 
clear that no place in San Francisco is safe for narcotics trafficking. And we intend to 
intensify this drive. My office has just submitted a $1,000,000 proposal to the State 
Office of Criminal Justice Planning to add to our capability to arrest, prosecute and 
supervise drug offenders. 

A New Day Coming at the Wharf 

For the first time in memory, there is agreement and unanimity of purpose among 
fishermen, merchants and residents on plans to renew our much-loved Fisherman's 
Wharf. This number one tourist attraction has tended to become dominated by 
non-fishing activities, commercialism, congestion and parking problems that many 
consider honky-tonk. And the fishing industry — its original purpose — has been in 

Now at last we have achieved agreement, using the Redevelopment process to revitalize 
the area while the Port modernizes and expands fishing facilities with new berths and 
state-of-the-art equipment on Pier 45 — plus a piazza on the triangular block at 
Jefferson and Taylor Streets and possibly an open air public marketplace. 

New life and reinforcement of the fishing industry is promised for the entire area, along 
with added parking facilities, improved traffic flow, resurfaced streets and sidewalks and 
its own unique signing. 

The creation of a Redevelopment Survey Area is now before the Board. It should be 
clear that this renewal process will not utilize eminent domain or the taking of private 
businesses. I have asked residents, merchants and fishermen to serve as an official 
advisory body throughout the redevelopment process to provide input every step of the 

15,000 New Housing Units 

One of San Francisco's most stubborn problems is housing — both its availability and its 
price. We have innovated, pioneered, worked doggedly and still, the supply of affordable 
homes does not approach the demand. 

In 1981, I instituted a six-point program to 1) re-zone under-used commercial areas, 2) 
utilize surplus City land; 3) offer financing help; 4) require office developers to finance 
housing; 5) build low-cost housing, and 6) rehabilitate existing apartments. The program 
has had extraordinary results. During my administration, almost 15,000 new housing 
units have been built — doubling the pace of the 1970s. 

We introduced OHPP — the Office Housing Production Program — which requires office 
developers to finance new or rehabilitated housing. That program has generated more 
than $30 million from developers to finance more than 4,000 homes — with 60 percent in 
the low-to-moderate income category. 

More than half the new units have been directly assisted by public financing. In 1985 
alone, $300 million in tax-exempt mortgage revenue bonds were sold — financing more 
than 3,000 new apartments. Re-zoning has created sites for 13,000 more dwelling units. 
Public lands provided sites for 1,700 new units. Local, federal and state programs 
financed rehabilitation of more than 6,500 apartments. 


As an offshoot, the supply and demand forces of the free market are prevailing. The 
residential vacancy rate has now begun to grow and rents appear to have stabilized for 
the first time in a decade. 

On the horizon is the largest single housing development in recent history: Mission Bay. 
Santa Fe Pacific has agreed to build 7,700 attractive apartments in a new Bay-front 
community that includes offices, research areas, light manufacturing and retail. 

The proposed plan must not produce a community of monotonous density, with little 
appeal for working families. Rather, there should be a mix of housing types with special 
priority given to family units of 3 and 4 bedrooms for working people. In the next few 
months, we will seek a development agreement that will yield a surplus of housing with a 
mix of dwelling units for growing families. I have asked Chief Administrative Officer 
Rudy Nothenberg and Planning Director Dean Maoris to expedite negotiations on a 
development agreement for submission to the Planning Commission and Board of 
Supervisors late this year. Mike McGill, executive director of SPUR, has joined my staff 
for the remainder of the year to represent my office In Mission Bay planning. 

In developing a future housing policy, we must all come to grips with some basic facts: 

1) Despite predictions ours would become a city of predominantly singles, there is a 
growing need for family housing. As the city of the largest secondary migration in 
America, new families will continue to strain our tight housing stock. 

2) There is no magical solution to providing affordable housing. No city in the country 
has used as many forms of zoning and innovative financing, but without subsidies and 
neighborhood cooperation, affordable homes cannot be built. 

All the breast-beating and rhetoric in the world can't produce affordable homes — only 
practical, dollars and cents programs will do the job. 

3) We have made a dent in rental housing, and 3,000 new units will come on line in the 
next two years. But costs of buying a home here remain prohibitive for many first-time 

The great need for affordable family homes makes it particularly distressing that a 
selfish few could seek to block their construction on the Balboa Reservoir and 
Polytechnic High sites by manipulating the initiative process. The same process is now 
being used to delay long-sought senior housing at Pineview, above the Broadway tunnel. 
This is a great disservice to the real housing needs of the people of San Francisco. 

The AIDS Battle Continues and San Francisco Leads the Way 

As a municipality already spending $17.5 million this year on AIDS — and $34 million 
over the last five years — we must assess the future of the battle and our resources for 
carrying on. 

The number of AIDS victims needing care in the San Francisco Bay Area is expected to 
climb 153 percent in the next four years — with 5,000 living patients requiring varying 
levels of treatment. Today, there are 1,451 patients here of 1,720 in the Bay Area — 
with a tenth of them needing skilled nursing care. In just two years, the Bay Area figure 
is estimated to be 3,850 patients needing some level of care. 


To date, most funding has been in City dollars. By necessity, this must change. We must 
look increasingly to the state and federal government for financial help in this most 
serious public health crisis. 

We have proposed reopening of the Public Health Hospital in the Richmond District as a 
regional skilled nursing facility — to meet a need for beds that will be critical in only 
two years. Last week the Senate approved a MiUtary Appropriations Bill which includes 
the Public Health facility. I would like to thank Congresspersons Barbara Boxer and 
Nancy Pelosi and Senators Alan Cranston and Pete Wilson for their strong support and 
advocacy. Senator Cranston also joins me in urging establishment of other federal 
regional hospitals in the East, North and South of the country. It is essential that such 
facilities be built and operated with federal dollars — since no local community or group 
of communities can absorb the high costs. Such a program deserves a high national 
priority — and an urgent status. 

Other good news is that Ralph K. Davies Medical Center has agreed to take 100 skilled 
nursing care AIDS patients within six months — at the Medi-Cal rate of S140 a day — 
the first private hospital to volunteer to do so. 

AIDS Testing 

It concerns me increasingly that testing for the AIDS virus has become controversial. 
While some consider it "not useful," "unwarranted," "of little benefit" or "not cost 
effective," the American people generally think otherwise. A recent Gallup Poll found 
that 90 percent of the people support mandatory testing in specific instances, and 
currently 32 states are considering various forms of testing legislation. 

I believe that as a public health measure, limited confidential testing can have a positive 
impact on health maintenance to prevent the medical consequences of unknowingly 
spreading the disease. 

The key to leadership at this time is how to provide testing that 1) protects the civil 
rights of those already ill or infected and 2) prevents spread of a disease that is 100 
percent fatal. 

San Francisco has demonstrated its medical and social leadership in dealing with AIDS, 
and at the same time shown deep compassion for those who are infected and ill. The 
same caring leadership must be demonstrated in protecting the rights of the uninfected. 

With an estimated 30,000 to 40,000 San Franciscans currently infected, we have a clear 
public health responsibility to take all steps necessary to prevent the spread of this 
deadly virus — including considering certain areas of testing. We already test for far 
less threatening diseases, it is imperative that the public be further protected against 
what has become this century's worst health menace. 

You will recall that a few years ago debate raged about closing the bathhouses — but 
today there is little doubt the bathhouses gave impetus to the present epidemic. The 
question now becomes: can limited testing be an effective mechanism to protect the 
public health and prevent the spread of the disease? I believe it can. 


After considerable discussion with my AIDS Task Force of medical experts, and serious 
thought and review of all states and their testing, I believe that certain confidential 
testing or mandatory educational programs may be appropriate and beneficial — and 
should be considered — in several limited areas: 1) for persons undergoing surgery in 
certain institutions; 2) for persons entering and leaving jails; 3) for high risk groups using 
sexually-transmitted disease clinics, family planning clinics, abortion clinics and 
methadone programs, and 4) for marriage license applicants. 

I will shortly send to the Health Commission, for its consideration, a letter outlining my 
specific recommendations. 

Meanwhile, I urge that as a highest priority, state and federal laws be changed to assure 
that testing policies protect against discrimination in employment and housing and 
prohibit cancellation of medical insurance. We are carefully watching the testing areas 
as various medical authorities, states, local entities, as well as the Federal government 
enact laws and regulations, and it is clear that legislative mandates are essential. 

I have directed the Health Department to expand voluntary testing sites immediately to 
achieve a 48 hour turnaround for test results. Currently the wait is four weeks, with a 
waiting list of 600 people. Individuals should pay for tests when able to do so . 

The department is now in the process of opening new voluntary and confidential testing 
sites in District Health Centers at 1301 Pierce Street, 2401 Keith Street, 240 Shotwell 
Street and 551 Minna Street, with evening hours. Testing is also available at Health 
Center #1 at 3850 17th Street. 

It is hoped that persons at high risk to AIDS will avail themselves of these voluntary, 
confidential facilities. For those who test positive, there are educational and counseling 
programs to help them find adequate care and on-going support. 

Help for the Troubled Housing Authority 

One area of high priority remains the Public Housing Authority, and its 22,000 residents. 
Despair, drug abuse, joblessness and most of all hopelessness take a terrible toll in the 
projects — particularly among families in the larger ones. 

As related elsewhere in this report, police are in the projects cracking down on drug 
dealing. The projects are getting more help as Housing Authority tenants, San Francisco 
Alive, the Sheriff's SWAP Program, Project S.A.F.E., the Recreation and Parks 
Department, the S.F. Conservation Corps, and the Department of Public Works have all 
joined in major cleanups in many of the projects. Buildings have been painted, abandoned 
cars removed, entire complexes steam-cleaned, lawns and flowers planted. And we're 
trying to strengthen tenant associations to make the improvements longlasting. 

These efforts must never relax. I have walked through corridors thick with debris and 
foul with odors, and I have made sure the Authority has responded with brooms and paint 
to clean up and maintain buildings. And one of the most pleasurable aspects of my time 
in office is meeting weekly with young people in the Hunters Point area, watching them 
awaken to challenges and improve their school work. 


Historically, the Housing Authority has languished, been neglected and little considered, 
in the backwater of the City's bureaucracy. Dramatic and positive steps have been 
taken in recent years to improve its management and stature. The Authority must not 
be allowed to slip back into its previous obscurity. 

A most conspicuous positive step was transformation of the infamous old "Pink Palace" 
into the Rosa Parks Apartments for seniors — now a model project for the nation. 
Another step will be the replacement of the Plaza West highrises with a new complex of 
garden apartments. Highrises are not suited for family living, and the present structures 
are to be demolished in January. They will be replaced with one, two and three story 
buildings that offer sunshine and open space — at a total cost of $18.9 million — ready 
for occupancy in mid- 1989. 

This development will comply with a Federal Court order to provide low rent housing in 
the Western Addition. The new buildings will be much lower, conforming to 
neighborhood structures — with 203 units compared to 332 in the highrises, and with far 
less density and congestion. The next objective is to replace Plaza East highrises, with 
their small units and narrow hallways, with far more attractive low-rise structures. 

Stop the Squabbling on the School Board 

Education is the door to opportunity for young people, and failure to work with some 
sense of unity and common purpose to enhance instruction and boost test scores is a 
blight on our city. This office now has no direct jurisdiction over schools, but shares the 
abundant concerns about them with people of San Francisco. The crisis of confidence in 
our school system is immense. 

I believe Superintendent Ramon Cortines has acted courageously and effectively to meet 
the district's formidable problems, taking bold steps to confront the $18 million 
budgetary shortfall, and moving to correct asbestos problems at McAteer High School 
and several others among the 147 school sites. 

But the Board of Education, which should be giving him full support, is so divided and so 
polarized politically it hamstrings his efforts to provide leadership and coherence in 
improving our schools. 

1 believe serious consideration should be given to replacing the elected board with one 
appointed by the mayor and confirmed by the Board of Supervisors. That way, school 
board members would be spared the divisiveness of elections, and accountability would 
be vested in one person: the Mayor. Since I am leaving office, I have nothing to gain 
from this arrangement, but our schools and the City will gain much if ultimate 
responsibility is not divided among seven squabbling School Board members. 

The Improvement of Public Services 

Efficient delivery of public services is what government is all about — or should be. 
People have every right to expect quality services in return for their tax dollars. We 
must strive to give them what they pay for. 

Maintenance and improvement of services have been my administration's overriding goal 
for nine years. In my view, we have had considerable success, and I am particularly 
proud of the many cooperative efforts between the City government and the private 


Many programs and processes, previously unknown to government, are now fully 
operative and institutionalized: 

** The Mayor's Fiscal Advisory Committee : Government has a continuing need for 
outside expertise, and MFAC has performed extraordinary public services in providing 
it. About 40 business executives, community and labor representatives have dedicated 
their time and talents to nearly 80 projects since 1979. Their work on our behalf was 
responsible for notable improvements in a number of City departments, increasing 
efficiency and results. Their efforts have saved tens of millions of taxpayer dollars. 

** Training — Using the most modern techniques, we have sent virtually all department 
managers back to school to improve their management skills. With the help of 
Transamerica, all supervisors are expected to participate in this intensive study 
program. Most already have, and some want to come back for more. 

** Recognition — Good government begins with good people — and we have worked to 
motivate City employees, improve skills and provide better tools to work with. As part 
of the upgrading process, we now honor good managers among department heads and in 
the ranks — with a series of awards, such as "Department Head of the Year." As a 
result, public employees know good work is appreciated and most are trying harder. 

** Management by Objectives — Since the beginning of my administration, we have had 
a program of setting standards, targets and objectives and measuring results in City 
departments. Administered by my staff, this modern business method has become a 
keystone of our management oversight. I personally study the reports, cite the 
deficiencies, see that they are corrected and set new targets each year. All departments 
now work under MBO, and through it we have seen a pattern of improved efficiency, 
productivity and accountability. 

Those improvements often yield tangible benefits to San Franciscans in improved 
services, greater conveniences and often lower costs. Let me give you just a few 
highlights from a number of departments: 

+ Ten years ago, the Muni Railway's worn-out fleet was falling apart. Today the bus 
fleet and cable cars system are renewed, breakdowns, accidents and complaints 
down sharply and Muni is carrying 220,00 more riders daily. 

+ Using computers, traffic signals at 325 intersections have been re-timed — 
increasing traffic flow and saving drivers fuel. 

+ Ten years ago it cost us $10 million a year to collect 5,000 tons of litter off City 
streets. Today, that same $10 million collects 21,000 tons with mechanized 

+ Crime is down more than 20 percent — with 233 more police officers on the job 
since 1979 and response time reduced from 8 minutes to about 2 minutes. 

+ Building permits once took many weeks — now 60 percent are processed within 
five days. 

+ Public libraries are open seven days and seven nights for the first time ever — 
with their book collections increased by 400,000 volumes. 


+ The Fire Department has exceeded its goals — and now averages a 2.6 minute 
response to fires citywide. And with a 12 percent increase in runs, the ambulance 
service held average response time to 6.4 minutes. 

+ San Francisco Zoo, where attendance bottomed out at 571,000 ten years ago, has 
been beautifully rejuvenated and tripled that low attendance figure last year to 1.7 

+ Since 1980, the Recreation and Park Department has planted 16,000 new trees, 
reforesting nearly 100 of Golden Gate Park's 600 acres. 

+ City golf courses are greener than ever — with 90 percent of the holes top-rated 
by the USGA. Rounds played increased from 298,000 ten years ago to 393,000 now 
— with revenues quadrupling. 

+ The huge Clean Water sewage system is now 93 percent complete — at a savings 
of Si billion at what had been projected as a $2.3 billion project. 

+ In an energy-conservation program over the past five years, the Bureau of Light, 
Heat and Power has converted 16,500 of the City's 18,000 streetlights to sodium 
vapor — saving 12,000,000 kilowatt hours a year. 

City departments have been pulling together on various special projects. A good 
example: San Francisco Alive, with the support of the Department of Public Works and 
the San Francisco Conservation Corps, has conducted no less than 35 neighborhood 
cleanups in the past two years. And those departments joined the Recreation and Park 
Department and the residents in a Twin Peaks beautification project that has enhanced 
the famous overlook for residents and tourists. 

Crucial Propositions on the November Ballot 

More than in any election in recent history, the issues put to voters in November will 
profoundly affect the destiny of San Francisco. So many important questions place a 
great responsibility on the electorate. Let me discuss several of them. 

Last May, the Chief Administrative Officer and I jointly announced four bond issues for 
the November ballot. This is our first major capital improvements package, aimed at 
upgrading city facilities, since Proposition 13's bond restrictions were lifted by voters 
last year. All are critically important to San Francisco. 

PROPOSITION A will provide $28 million to reconstruct and improve police stations 
throughout the City. Most of our nine neighborhood stations were built earl;, in the 
century and are falling apart. They are totally inadequate for modern police work and 
would probably collapse in an earthquake. Prop A will mean safe, efficient stations and 
faster, more reliable police services. 

PROPOSITION B would permit rebuilding and repaving of miles of residential streets and 
about ten of the City's main arteries — with $27 million in the first citywide public- 
works issue. 


PROPOSITION C would provide $26 million to build a 185-bed psychiatric care hospital 
at San Francisco General, badly needed for all the years since a mis-directed state 
"reform" closed mental hospitals and eliminated more than 30,000 beds for the mentally 
disturbed. This new facility will help clear our streets of disturbed people who now 
wander aimlessly and suffer without medical help. I am pleased to note that polls show 
that about 70 percent of the City's voters approve Proposition C. 

PROPOSITION D would give the City a totally refurbished Kezar Stadium, demolishing 
the existing superstructure and putting in 10,000 new seats, dressing and restrooms, 
scoreboard and running track. The $18 million bond issue would also permit major 
projects at McLaren Park, Crocker-Amazon, Buena Vista Park, Lake Merced and 
Portsmouth Square. 

I strongly urge YES votes on all four bond issues. They are extremely important to 
enhance the safety and quality of life in our city — and they require no tax increases. 

PROPOSITION F would give eight neighborhoods much-needed parking facilities. In my 
years as Mayor, San Francisco has grown by 86,000 residents and 40,000 vehicles, and 
many areas are now heavily congested. Proposition F will enable the City, at no cost to 
property taxpayers, to finance eight off-street parking facilities — in the Inner 
Richmond, Chinatown, North Beach, Outer Clement, Upper Fillmore, Upper Market, Noe 
Valley and Polk Street/Van Ness. I urge a YES vote on Proposition F. 

PROPOSITION W also deserves voter approval. This proposition would signal public 
support for construction of a much-needed downtown ballpark for our winning Giants. 
Couple with the renovation of Candlestick Park, now in the third year of a five-vear 
program, this will assure that both the 49ers and the Giants have first class facilities and 
will remain in San Francisco for the next 20 to 30 years. 

At the outset of this message, I thanked you for the good relationship that has existed 
between my office and the Board of Supervisors. Let me now stress again the crucial 
importance of continuing that rapport in the days to come. As new issues arrive — and 
they do so with unfailing frequency — a spirit of cooperation between the legislative and 
executive sides of City Hall will be immensely valuable in resolving them, and San 
Francisco will be better for it. 

I am deeply grateful to City employees and the department heads for their dedication, 
and their unflagging efforts to make government function more efficiently. They have 
made the quest for efficiency and for excellence part of our civic structure — 
institutionalized at no cost. 

San Franciscans can take great pride in a city where public employees really care about 
them and are truly concerned about the quality of their lives. A caring and conscientious 
municipal workforce cannot be ordered — it happens because highly motivated workers 
and managers believe they serve the public trust. 

My thanks also to the many private professionals who have worked with us so effectively 
to help improve our processes and bring state-of-the-art techniques into our systems. I 
strongly urge the new mayor to continue the relationships with the private sector I have 
found so valuable. 


I will leave office with good heart three months from now, knowing I have worked to the 
fullest in addressing this marvelous city's needs and in seeking to chart a reasoned course 
for its future. Being Mayor of San Francisco is an incredible job — a job with power and 
possibilities and some very special pleasures. With the constant drumbeat of problems 
and persistent personal testing come some inevitable disappointments and some great 
personal satisfactions. 

I thank the people of San Francisco for the great privilege it has been to serve them for 
these nine years. 

Thank you. 


Office of the Mayor w %&& 1MW _ adt Af>\inc 

San Francisco l*U&*ft« . I?) ART AGNOS 

I (ft- >c „ toi^t /^Z' ) DOCUMENTS DEPX 

wflVl 1983 



Ki' October 3, 1988 

Madam President, Members of this Honorable Board... and 
fellow citizens of San Francisco, today I present to you a 
report on the State of the City. 

Since the last State of the City message San Francisco 
has set itself new tasks. 

For the first time in ten years we are not going to spend 
more money than we take in. 

No longer will the use of surplus disguise added new 
costs we will have to keep paying after the surplus is gone. 

In my first 180 days in office, we had to find $180 
million — $1 million a day — to bring the 1988-89 budget 
into balance. 

And that is what we did. 

As a result, in 1988 we are spending less than we spent 
in 1987. 

Not many governments in our country can say that... and 
also know that they have kept essential services intact 
while keeping faith with such commitments as comparable 

When the budget was balanced, San Francisco could point 
to a bond rating that was as good as it had been when we had 
a surplus of more than $200 million. 

We did it by putting business as usual behind us... and 
changing the usual policy which scrutinized only new costs. 



This year we scrutinized every cost in the city budget. 

That zero-based budgeting approach is here to stay. 

To keep us on the right track, it will be my policy to 
deny any supplemental budget reguests that jeopardize the 
fiscal strategy we have adopted. 

To guide our decisions on future budgets, so that one- 
time surpluses aren't used to add new costs, I am asking 
voters to confirm Proposition X. 

It is a common sense policy that calls for city budgets 
to balance costs with revenues and to prohibit the use of 
one-time surpluses to fund ongoing costs. 

Current projections show that without further action San 
Francisco would have a deficit next year which would carry 
forward to future years. 

Those projections don't include the substantial costs 
that lie ahead for bringing our government buildings up to 

The answer can not be just more lay-offs, service cuts or 
business tax hikes. 

That's not the long-term answer. 

For that we must improve our revenue base and enhance 
economic prosperity. 

With that in mind, City Hall's passive attitude toward 
business planning is gone, replaced with an aggressive 
approach that can benefit all San Franciscans. 

I am scheduling a meeting with the Mayors of other major 
Bay Area cities this winter. There I will propose that in 
1989 we jointly lead the first-ever San Francisco Bay Area 
trade team to the Far East. 

I have met with Pacific Rim business leaders to encourage 
them to name San Francisco as the Host City for the 1990 
Pacific Rim Conference, which brings heads of state, 
business leaders and financial leaders together. 

This month another important trading partner -- the 
European Common Market — will open its first consulate on 
the West Coast — and it will be in San Francisco. 

San Francisco also won the selection to be the Host City 
for the Tall Ships that will celebrate the 500th anniversary 
of Columbus' arrival in the New World. 

Columbus Day, 1992 will bring the Tall Ships sailing 
through the Golden Gate, the first time they will ever 
gather in the Pacific Ocean. 

The event that can be more spectacular than the Statue of 
Liberty celebration in New York harbor in 1987. 

San Francisco has been selected to be the headquarters 
for the newly formed Seabourn Cruise Line, and in January 
the world's most luxurious cruise ship — the Royal Viking 
Sun — will begin its maiden world voyage from San Francisco 

It will draw some 4,000 travel agents here from around 
the world. 

Next week I will accept the report of the Cruise Ship 
Task Force formed by the Port this year and give active 
consideration to their proposals to market our Port, 
including the possibility of building a new Cruise Ship 
Terminal . 

Convention bookings are up 15 percent this year, and I 
accepted the Convention and Visitor's Bureau request that 
the Mayor become part of their new marketing strategy -- 
personally welcoming a convention a week since taking 

This year San Francisco set a new national record for 
successful business start-ups, and our level of eight 
successes for every one that didn't succeed ranked us number 
one in the nation. 

Our new one-stop service for business helped 200 firms 
since it opened this year, and next month we will issue an 
expanded, revised City Guide for Small Businesses. 

We're considering establishing a new Working Capital Loan 
Pool to respond to the needs of small business. We've 
helped this year with the existing Small Business Loan 

That was what we used to help Lonnie Jensen and Company, 
a machine shop owned by the same San Francisco family for 
three generations. 

When they moved from Larkin and Post to a larger space at 
25th Street and Pennsylvania, they had room for new 
equipment but needed a loan. 

Our loan let them buy the equipment. . .which meant they 
could hire more people. 

We've also helped secure private financing. 

Bayview Hunter's Point will have its first office/shopping 
center, which will be at Third and Evans, as a result of 
work we put in to bring a Black developer and a Korean 
venture firm together. 

This week the first television series to be filmed in San 
Francisco in five years will begin shooting here. 

"Midnight Caller," the new series, will bring $700,000 in 
new business for each of the 13 episodes filmed here. 

For the first time, we have a full-time Film Coordinator 
and, with the Board's action later today, a new easy permit 
process so that we can encourage more film business. 

The San Francisco apparel and fashion business, worth $4 
billion and our city's largest manufacturing industry, will 
get a sharp new focus with the new Fashion Center — an 
expansion we've strongly supported. 

We're taking a new direction to support one of our city's 
oldest and most valuable businesses — the fishing industry 
at Fisherman's Wharf. 

A $28.2 million improvement program for the "Fisherman's 
Wharf Commercial Seafood Center" will make fishing the 
priority, and keep intact the heart of the Wharf's appeal 
for both tourists and residents. 

Fisherman's Wharf anchors one end of San Francisco's 
waterfront that extends for seven miles around to Bayview. 

Earlier this year I proposed a $200,000 study to develop 
a strategic plan for our Port's future... and today I 
respectfully renew my request to this Board to approve this 

San Francisco must not only be smart about our future... 
we must be wise. 

The developments under discussion for the eastern part of 
the city -- focusing on our waterfront and nearby areas -- 
are the greatest opportunity our generation will have to 
make a lasting contribution to San Francisco. 

We have earmarked federal funding to turn the Embarcadero 
roadway into a grand, world-class landscaped boulevard that 
will run from the newly refurbished Fisherman's Wharf to 
China Basin. 

A new streetcar line with refurbished vintage streetcars 
will run from Market Street on the north leg of the 
boulevard to Fisherman's Wharf. 

A new Muni Metro extension will run from the foot of 
Market Street on the south leg of the new boulevard to 
Mission Bay. 

The boulevard, street car line and Muni Metro expansion 
are already financed. 

Earlier this year, we wrote rules to develop a model 
process for citizen input as we consider the Mission Bay 

The Planning Commission is now holding public hearings on 
the Environmental Impact Report (EIR) . 

The plan for this 300-acre project and the accompanying 
development agreement should be through the citizen process 
and before the Board of Supervisors by next Spring. 

It will keep the promise that San Francisco is going to 
build homes that a school teacher, police officer, or bus 
driver can afford. 

It will also keep the promise that San Francisco will 
have room for families of the next generation. 

I've ordered the plans, which had contained no units 
larger than two-bedrooms, changed to include three and four 
bedroom units. 

Our draft plan for Bayview Hunter's Point, which anchors 
the southern end of our waterfront, will be ready by 
November 1 . 

It will deal with providing new economic growth and 
opportunity along Third Street, as well as construction of 
more housing that middle income families can afford. 

It is also in the eastern side of the city that we are 
looking at the proposal to place a smaller scale ballpark, 
at Second and King Streets, and an arena at Seventh and 

There is some creative thinking in the new proposals, and 
the public will be given an opportunity to review them. 

I have asked Mr. Toby Rosenblatt, former President of the 
San Francisco Planning Commission, to head a financial 
advisory committee to pursue financial methods and private 
support for creation of the facilities. 

I have asked for a parking and traffic analysis to be 
prepared so that the public can have good information on the 
impact of such facilities. 

I have asked that a fair and open procedure be established 
so the city can receive proposals and select a developer to 
build the facilities. 

We can tap the creativity of the builders of these kinds 
of facilities who have expressed strong interest in making 
proposals to the City. 

Above all... this will not be exclusively a City Hall 

The people must be included. ... and there will be a full 
public review before any final decision is made. 

The planning that we do for our city. . .most of all must 
meet the test of supporting San Franciscans' hopes and plans 
for their own futures. 

That means affordable housing. 

Mission Bay represents a long term element. . .while Rincon 
Hill and South Beach already are opening a part of our City 
to residential uses after nearly a century. 

This administration put into motion plans for building 
400 new apartments. .. adding to the 2,800 new apartments 
currently in the pipeline. 

All 3,200 are receiving financial assistance and loans 
from the City or the Redevelopment Agency. 

I signed Supervisor Doris Ward's measure to extend the 
af fordability of housing built on land provided by the city. 

Now the lowered home price our gift of land provides must 
be passed along for 50 years -- even with resales -- so it 
can not be cashed out as a windfall for the first-time 

I have signed the ordinance by Supervisors Bill Maher, 
Nancy Walker, Carol Ruth Silver, Tom Hsieh and Richard 
Hongisto for city artist live-work spaces. 

The Planning Commission has approved strict controls on 
demolition of sound single-family housing while permitting 
alterations to continue. 

I want to thank the members of the Demolition Task Force 
who served at my reguest earlier this year for their helpful 
role in preparing the draft presented for public discussion. 

I have signed Supervisor Nancy Walker's ordinance setting 
a city policy on homelessness, recognizing that the issue is 
not shelters but housing. 

I am forming a technical working group to develop a 
comprehensive housing policy for the city. 

It will give us a consistent blueprint so we can assess 
needs against our land resources. 

I also remain convinced that a part of our affordable 
housing strategy involves a reasonable vacancy control 
measure . 

We have failed at that goal so far this year. 

Supervisor Harry Britt's ordinance is the best proposal 
to date and I would sign it into law if the Board would pass 

San Franciscans made progress this year in working 

We took steps to improve teamwork in our Fire Department 
this year, with a new Chief, a new Fire Commission, new 
promotions for 82 firefighters -- with 46 of them being 
Black, Hispanic or Asian. 

Their excellence was proven once again in putting out the 
devastating fire in The Haight .. .which threatened both lives 
and a community. 

Not one life was lost... not one person injured. .. and San 
Francisco couldn't be prouder of the job they did and the 
men and women who protect us. 

This year San Francisco's city workers accepted the 
sacrifice of a wage freeze to help us solve the deficit. 

I am grateful to them for their help. 

I am also grateful to City Attorney Louise Renne and to 
the San Francisco General Hospital physicians who settled 
back wage issues and helped us in our deficit reduction 

Our City Attorney is an outstanding public servant who 
has put together an excellent staff. 

I am most appreciative of the counsel they have provided 
me on many issues this year. 

San Francisco now needs a top-to-bottom civil service 

It must be thoughtful, fair, and fit the match between 
our needs and our resources. 

Every issue belongs on the table -- benefits, wages and 
staffing patterns. 

I will ask union leaders, management experts and my own 
top staff to begin that process. 

This year San Francisco faced a number of extraordinary 
labor problems, including a threatened strike of San 
Francisco General Hospital nurses. 

Janitors in downtown buildings walked off their jobs. 

Hospital workers and nurses struck our city's private 

I accepted the request to be directly involved in each 

We averted the city nurses' strike and brought the 
parties to the table in the strikes involving janitors, 
health workers, and private nurses. 

And we stayed at the table through marathon negotiating 
sessions until the groundwork was laid for a conclusion. 

San Francisco became one of the few places in our state 
where a school bond passed this year, and we did it by 
teaming downtown and the neighborhoods in a joint effort to 
rescue our schools from disrepair. 

The June passage of Prop A, the school bond, came with 
the leadership of Pacific Telesis, Pacific Gas SElectric, 
Bank of America, Chevron, Shaklee, Wells Fargo, Levi 
Straus, Southern Pacific and others in raising the money 
necessary to get out the message to our citizenry. 

That contribution was matched by the thousands of 
volunteers who walked our neighborhoods. 

I am now asking voters to approve another Proposition A - 
- to build a new Main Library to replace the existing 
building which reached capacity in 1942. 

We must have a library fit for today and capable of 
handling information in today's technological world. 

This year private interests started their campaign, with 
our help, for a major reshaping of our city's museums. 

It includes a new $70 million Museum of Modern Art, plans 
for a new Asian Art Museum, expansion of our Academy of 
Sciences, and reorganization of collections at the DeYoung 
and Fine Arts Museums. 

This year our neighborhood arts organizations won 
national acclaim at the Kennedy Center, showing San 
Francisco's excellence and diversity. 

Those efforts lift our spirit and our economy .. .with one 
out of every 10 San Franciscans receiving some of their 
income from the arts. 

San Francisco's geography ... and the new museums, housing, 
retail centers, and transportation systems provide the 
setting — but they don't define the city. 

The city that my youngest son will find, when he and his 
class graduate from our city's high schools in the year 
2000, depends on the sense of community we build. 

It must not only be a sense of community that we are 
proud to hand them when they are adults, it is a sense of 
community that must include the children and youth of our 
city now. 

That approach is what we will need to solve the problem 
of graffiti. Money alone is not the answer. 

This year San Francisco had its first Youth Expo... the 
brainchild of Speaker Willie Brown. .. drawing 45,000 
participants. . .all planned and carried out by the youth of 
our city. 

And this year our libraries, Recreation and Park 
Department and schools teamed to offer every child who read 
eight books or more over the summer a free day at the Zoo. 

More than 17,000 children qualified and came for their 
special day. 

I am also looking forward to announcing that we have 
acquired a site on Ellis near Leavenworth for a new 
recreational facility in The Tenderloin, where 3,000 
children now live without adequate room to play. 

It is the human-scale of life here that both makes us 
more aware when we fall short and gives us our great 
opportunity to do better. 

That was how Miss Myrtle Fitschen felt. 

She lived in the Tenderloin for 50 years, and died at 
age 86 just a few years ago. 

When Miss Fitschen died, a piece of cardboard was found 
on the bedside table in her hospital room, and on it was 
written her last will. 

Myrtle Fitschen had decided to leave what she had to San 
Francisco's health and education efforts — a final tribute 
to her fellow San Franciscans. 

Miss Fitschen 's modest life gave no clue to the fact that 
she had an estate worth $1.2 million. 

Today, through Judge John Ertola's good offices and the 
administrative talents of the North of Market Senior Center, 
Miss Fitschen's estate pays for dentures, hearing aids, 
rental deposits and art programs. 

Myrtle Fitschen's strong attachment to her neighborhood 
is something all San Franciscans understand. 


At the Oceanview-Merced Heights-Ingleside (OMI), more 
than 500 neighbors asked for a meeting to discuss their deep 
concerns about drug dealing near their playground and about 
a safe environment for their children. 

Tragically, we know how fragile that safety can be... as 
we saw when a young Samoan boy lost his life earlier this 
year at the Potrero Housing Project. 

Today, thanks to legislation by Supervisor Wendy Nelder, 
the sale of the kind of toy gun that misled police and 
created an instant tragedy is now illegal in our city. 

Her legislation, along with a companion measure authored 
by Supervisor Jim Gonzalez was also used as the model for 
a new state law. 

Today we also have a pioneering effort in OMI, with a new 
coordination between our Recreation and Park Department, 
the Library and the Police Department. 

It includes having off-duty police officers at the 
playground six hours a day, seven days a week, to supervise 
recreational and social activities at the park. 

They are putting a sense of community to work. 

That is the kind of approach I would like to see in our 
public housing projects. But our San Francisco resource of 
committed neighborhood and support organizations must be 
matched by a commitment from the federal government in 
Washington to do its fair share. 

This year San Francisco took new action on an epidemic in 
our midst -- crack cocaine. 

We have increased drug arrests, and we have new law 
enforcement assistance from California Attorney General John 
Van de Kamp . 

But there are no easy solutions. 

The people who are most likely to help us provide 
solutions are those who work in the community and who 
understand addiction. 

A new drug task force comprised of representatives from 
16 community organizations now is examining how they can 
help with creative approaches. 


Earlier this year, we promised greater efforts to meet 
the problem of homelessness in San Francisco. 

A significant number of homeless people qualify for 
federal Social Security help, but can't make their way 
through the bureaucracy to get the help they need. 

Instead they fall onto our city's General Assistance 
program, costing our local taxpayers more and paying those 
in need less. 

We expanded a program to use city social workers to help 
these people... and us. 

In the first six months the expanded unit has worked so 
effectively that it has paid for all the added staff costs 
for the full year... and there is still half a year left. 

More importantly, it is making a difference in people's 

One of them was a man living mostly in Golden Gate 
Park, with no home, no ID, and no hope of getting into a 
recovery program required for Social Security aid. 

Our social workers helped him enroll with Social 
Security, and we agreed to be responsible for his keeping to 
the rules to be in a recovery program. 

Now he has a home, someone to help him manage his monthly 
check and someone to help him keep each week's treatment 
appointments . 

San Francisco solutions also are what has made us a 
national model in the war on AIDS. 

But we need new steps to confront the even deeper impact 
that this epidemic is going to have on our city. 

I am establishing a Mayor's Task Force on the HIV 
Epidemic to bring together leaders from every part of our 
city's life — including for the first time people with AIDS 
and business leaders — so that San Francisco can develop 
the new world model on public-private partnerships. 

The federal government, however, has yet to take on the 
responsibility it should as our partner. 

I have decided not to accept the U.S. Public Health 
Service Hospital without the federal financial assistance 
that is essential for this to work. 


Our funding for AIDS services is already too hard to come 
by without accepting a deficit from the federal government. 

My Administration also will fight the Federal Aviation 
Administration's attempt to withhold federal funds due us. 

They are trying to use these funds as a bargaining chip 
to get us to waive our environmental objections to landing 
the noisy Q707 airplane at our airport. 

If they persist in illegally withholding federal funds, 
we will continue to challenge them in court. 

As Mayor of a new Administration, I have had the 
opportunity this year to bring more people from our city's 
diverse communities into city leadership through 
appointments to city commissions. 

My goal has been to introduce the next generation of 
leaders and continue to include the seasoned experience of 
current leaders in a mixture that encourages both to do 
their best. 

The ambition I seek to satisfy is neither mine nor any 
other person's, but the ambition of our entire city to be 
well served by those who also know us well -- in our 
neighborhoods, community groups, labor unions, big and small 
businesses, and in our full diversity. 

Our city is better when everyone has an opportunity to 
participate, and that principle applies as well to our city's 

We took an important step this year with Supervisor 
Hongisto's ordinance authorizing the Human Rights Commission 
to review any city contract. 

As Mayor this year, it has been my honor to receive on 
behalf of the people of San Francisco current and former 
heads of state of Japan, Cyprus, West Germany and 
delegations representing many other nations. 

Among those who I count it a high honor to welcome on 
behalf of our city during this year have been a few rare 
people made extraordinary by the demands of conscience. 

One of them was Mother Teresa. 

Another one of them is Dith Pran, a man whose journey 
out of Cambodia's killing fields taught us once more about 
the power of humanity over inhumanity. 


I remembered my own father, a Greek immigrant who wanted 
his son to succeed in a new American homeland, who used to 
take me with him when people he felt were important came to 
speak in our community center. 

He used to hold me up on his shoulders so that even if I 
couldn't understand or remember what was said. .. somehow some 
of the greatness he found in those people would rub off on 

Following his example, I brought my own 11-year-old son, 
Christopher, with me to meet Dith Pran...and to be the one 
who put the Key to our city in his hand. 

The room that night was filled with the friends of 
Hospitality House -- San Franciscans who spoke Lao, or 
Cambodian, or Vietnamese, or Spanish -- of all races, gay 
and lesbian and straight. 

They honored a retired Wells Fargo executive, a top 
journalist and two Tenderloin neighbors. 

That night they were all just people who give their time 
to the homeless, to the new immigrant, to the children who 
need a park or someone who can teach them something. 

And they are making this city a great city. 

They represent the State of our City. 

We are a city filled with people who have found that life 
can be better when we are part of each other. 

People who respect and honor what we can each bring to 
the future, united in the civility which is San Francisco at 
its best, testing our capability for partnership even when 
we disagree. 

We are also a city and a people amazingly well matched to 
the challenges ahead of us, confident of our direction, 
secure in our values, and imbued with vitality and 

There are challenges which test us to match our values 
against events that threaten our balance. 

In one moment, a demonstrator comes to harm and we have 
to face not only how that harm came to be, but whether our 
policy for handling demonstrations is the best that it can 


But this is a city where wrong will not replace right, 
and where what is right is becoming the model the world 

The leaders of the first generation of San Franciscans 
chose well in making our city's symbol the Phoenix. 

What others elsewhere may see as an end, we know to be a 
beginning -- and that we need not fear change. 

In this, my first year as Mayor, I have benefited from 
the counsel and friendship of this honorable Board's 
President -- Supervisor Nancy Walker. 

I want on this occasion to publicly express my 
appreciation to her... as well as to the members of the 

I respect you and have found you to be good partners as 
we wrestled with difficult choices. 

I thank you for the support you have given me -- and I 
believe that the solutions we fashioned together will serve 
our city well. 


Office of the Mayor 
San Francisco 





October 2, 1989 

Mister President, Members of this Honorable Board and 
fellow citizens of San Francisco, this is the day set in our 
City Charter for the Mayor to deliver a State of the City 
report to you. 

I want to thank you for the support and cooperation of 
the Board, and most of all for the civility shown by this 
body during the past year — in times of agreement or 

disagreement . 

When this administration took office last year, we faced 
the challenge of turning the will of the people, as 
expressed in an agenda for action in the election, into can 
do action at City Hall and in City Government. 

We also faced pent-up demands that burst into full public 
view, as a federal judge publicly chastised our Fire 
Department as "out of control," and a thorough review of our 
city's financial books showed us heading toward a $172 
million deficit. 

Today the State of our City is that we are succeeding at 
a new course in San Francisco, and we also have reversed the 
course that led to the problems which confronted our city so 
suddenly in the early months of 1988. 

At the Fire Department, litigation to eliminate historic 
racism and sexism had been ongoing for 17 years with little 

result . 

Finally, the federal judge overseeing the consent decree 
spoke out from the bench, and this was the headline: 

"Federal Judge Says San Francisco Fire Department is Out 
of Control . " 


This Administration was 48 hours old and faced a crisis 
when the Judge shared her conclusions with me in her 
chambers, just before making her views public. 

I agreed with her privately and I said so publicly. 

Now, we've taken our expression of will and turned it 
into can-do action. 

In April 1988, there were only seven African Americans 
and 18 Hispanics ranked at H-20 Lieutenant or above. 

There were no Asians at all. 

Today there are 29 African Americans, 30 Hispanics and 12 
Asians in those ranks. 

These promotions exceed consent decree goals. 

In 1988, we made an unprecedented recruitment effort to 
reach potential firefighter candidates, and in November 
administered the first part of the exam to 5,000 applicants. 

In March, for the first time in almost 20 years, we 
admitted a class of new recruits based on an entrance 

examination without court intervention. 

In August we began a second class and in December we 
will begin a third class. 

So far, 70 percent of the recruits in these classes 
have been women and minorities — a higher result than the 
goals called for in the consent decree. 

Complaints of racial harassment which numbered 21 in the 
first 100 days of this new administration have dropped to 
two in the past 12 months. 

While we were taking charge inside the firehouse, San 
Francisco firefighters were putting in one of the best years 
ever in their performance outside the firehouse. 

The work of the Arson Task Force and the Arson Early 
Warning System cut the number of arson-related fires almost 
in half. 

The work of field inspections and stronger built-in fire 
protection helped drop the number of building fires by 233. 

Fire Department response to fires was 3.01 minutes. 

Best of all, fire-related deaths in 1988 dropped to their 
lowest level in 20 years to a total of eight. 

At the same time, because of new training and new 
defibrillator equipment, this year we saved the lives of 11 
San Franciscans needing emergency aid who would otherwise 
not have lived. 

What we have done at the Fire Department is to take 
charge with a new Fire Commission, a new Fire Chief and we 
have reversed the record to show real accomplishment. 

Tomorrow morning, at a special 10 a.m. session, the San 
Francisco Fire Commission will release a report on its 
record to date on the goals I asked them to meet. 

Our work at the Fire Department will not be accomplished 
in a single year or two. 

It will take a number of years to bring us to the 
completion of our goal. 

But we have matched our will with action and demonstrated 
that this city will meet its commitment to fairness and to 

We have benefited from bringing new people into 
leadership, just as this administration has done with 
the appointments of nearly 14 new members of commissions 
and boards across this city. 

When this administration took office, city government 
costs had exceeded current revenues each year for the past 
10 years. 

What's more, those costs above and beyond our revenues 
had been built into the city budget so that we would 
continue to face them after the surplus years were over. 

And in 1988-89, the surplus years were over and the city 
faced a $172 million shortfall. 

Today we have put our city on a sound financial footing. 

In last year's budget and this year's budget, I asked 
this Board to work with me in fashioning a two-year solution 
that not only met the immediate crisis, but turned around 
our business practices and set new priorities. 

The results are in, and this Board can take great pride 

in what we accomplished. 

Today, I report to the Board and the city that my 
financial advisors inform me that as a result of the changes 
we have made — and if all current revenues continue — we 
can look at a 1990-91 budget without a shortfall. 

This would be the first time in 12 years that our city 
has been able to meet projected current costs, including 
city worker raises and cost of living adjustments in 
programs, without facing a shortfall. 

Let me be clear on two points. 

When I speak of all current revenues, that includes those 
revenues scheduled for a sunset by June 30 of next year. 

And when I speak of meeting all current program costs 
with cost of living adjustments, I intend to continue budget 
reviews to decide when it is in the public interest to lower 
support for some programs and increase support in others — 
or even support new efforts. 

Even during our two-year deficit reduction program, we 
made those kinds of decisions, and made substantial 
increases in programs for AIDS, the homeless, to fight crack 
and substance abuse and to meet other high priorities. 

Next year this Board and this city will have a choice to 
continue building a program that focuses on our priorities 
or to provide a modest business tax rebate. 

The changes we have made to the city budget are longer- 
lasting than the cuts or increases in any one year's 

For the first time, we have put into place zero-based 
budgeting which makes existing programs compete against the 
same standards as all new programs. 

This allows us to eliminate waste and inefficiency and 
to make choices — which are always difficult — between 
competing priorities on a fair basis. 

Over the past two years, we have made budgetary changes 
that cut waste from city government and improved the quality 
and efficiency of services. 

These changes now save over $18 million each year. 

Those savings will recur and increase because the current 
budget includes six new audit staff in the Controller's 
Office who will conduct performance audits in any city 

We also have created a program that lets city workers 
notify us of waste and even fraud without risk to their own 
careers, with a first-ever Whistleblower ordinance. 

For the first time, we established a policy that put a 
priority on supporting revenue-producing positions in city 
government and not subjecting them to mindless across-the- 
board cuts. 

Today we can measure the results. They will add up to 
more than $28 million in revenues this budget year and even 
more in future budget years. 

All these steps have been taken while ve re-established a 
prudent reserve, a necessary step in retaining our bond 
rating through these difficult adjustments. 

This year we received the report from the firms which 
rate our city's fiscal health for bond offerings. This is 
what Standard and Poor's said: 

"Efforts in the current fiscal year and plans for 1990 
provide a clear indication that the city is re-establishing 
fiscal balance and reserves after several years of declining 
financial position. 

"During 1988-89 the financial position improved as a 
result of strong budget oversight and better-than-expected 
revenue. " 

What we have accomplished represents an historic turn- 
around in our city's budget. 

From this point forward, the choices we make will no 
longer be ones forced on us by an uncontrolled budget 
process. They will be choices about the opportunities we 
have to get things done for our city. 

Today, I report to the Board that ve believe San 
Francisco will receive an additional $26 Billion for public 
and private health services this year as a result of 
implementation of Proposition 99. 

Through Proposition 99, ve also will receive additional millions 
for new health education programs that we will implement 
with the San Francisco Unified School District. 

While much of the public focus has been on the critical 
need to reverse course in areas such as the Fire Department 
and budget planning, this past year also demonstrates our 
ability to move forward on the concerns — and with the 
values — expressed by the people of our city. 

We are a city that values diversity, and we are dedicated 
to seeing that our city has room for all of us. 

This year the U.S. Supreme Court overturned a standard 
used by many cities to assure contracting did not perpetuate 
historic racism and sexism. 

San Francisco became the first city in the nation to 
enact new legislation for awarding contracts to minority 
business enterprises and women-owned businesses. 

Our new standards are even tougher on racial and gender 
bias, and will result in a higher percentage of contracts to 
minority and women-owned businesses than before. 

That's bad for discrimination and good for the city. 

This year's California state budget failed to fund 
crucial family planning programs throughout the state, 
including some which serve the people of our City. 

That is unacceptable. 

Accordingly, I vill ask the Health Department to propose 
to the Health Commission a supplemental appropriation 
request to cover some of the loss of state funds for family 

We will work for new action at the state level to ensure 
they accept the responsibility that belongs to them. 

We are not going to let anyone pick fights with those who 
are already vulnerable. 

We also are strengthening our services to women who are 
victims of domestic violence, with a near doubling of city 

This will be accomplished through a strong, revitalized 
Commission on the Status of Women that will oversee those 
programs as well as other issues of justice for women. 

This past month, I also created a new Office of Children, 
Youth and Families. 

It is part of the strategy that we began by earmarking a 
Children's Budget and increasing city funding for services 
that aid children and families. 

Very soon, I will forward a proposal for the Mayor's 
Youth Employment Program which will give young people added 
incentives to stay in school and obtain job skills. 

An important part of our effort is the development of 
accessible child care. 

We have added new child care centers in our neighborhoods 
at the rate of one a month for the past 18 months. 

We will continue adding a new child care center each 
month for the next 12 months. 

San Francisco also took an important step forward in 
recognizing family diversity this year with passage of a 
domestic partners ordinance. 

That new law would allow lesbian and gay couples to 
formalize their commitments with the dignity and respect 
they deserve. 

I view November's ballot on domestic partners as a most 
important opportunity for us to send a positive message that 
we are a city that respects and cares for each other. 

There can be no question that we in this city understand 
and value the contribution and participation of lesbians and 
gay men as families. 

We can not respond to today's needs, much less our 
opportunities for tomorrow, with yesterday's answers. 

Last November, the voters concurred with our proposal to 
build a new Main Library at Civic Center to replace the 
facility that reached capacity in 1942. 

There was also agreement on the proposal to let the 
current Library serve as the new home for the Asian Art 
Museum, one of the stellar assets in our city's life. 

At Pier 7 at the waterfront, construction is under way for 
the city's first public access pier, the dream of many 

San Francisco is undertaking the first major expansion of 
mass transit in 20 years, with the extension of the J- 
Church line and with the new tracks that will take historic 
trolley cars from Castro to Fisherman's Wharf. 

Next month, voters will decide on Proposition B, a half- 
cent sales tax measure. 

It will allow us to proceed with a transit and street 
improvement plan that has the strongest transit-first 
provisions of any city in the country. 

Last November, voters approved our consolidation plan for 
parking and traffic. 

Since then we have won new state legislation to support 
the effort to serve the public far better. 

Our goal must be to provide the best public access 
possible not only to the physical parts of our city, but to 
the institutions of government itself. 

Accordingly, I vill ask this Board to place before the 
voters a charter amendment that vill allow city commissions 
to hold their meetings in neighborhoods throughout the city. 

It is time for City Hall to go to the people. 

In that spirit, this veek we will launch a prototype of 
the Mayor's Stations that I promised, so that San 
Franciscans can discuss their concerns with city 
representatives in their own neighborhood. 

Our first pilot program is in the OMI neighborhood, which 
itself is becoming a new model of neighborhood spirit. 

I intend to see that citizen's concerns are given prompt 
and serious consideration. 

None of us can be satisfied with the situation that 
became apparent this past year in the way findings from the 
Office of Citizen Complaints at the Police Department are 

I believe OCC findings should be presented directly to 
the Police Commission, without the current requirement that 
the Police Chief concur with the findings. 

If this Office is to work as we intended, it must have 
the confidence of the public and we must retain that 
confidence by insuring an impartiality beyond the reach of 
the most severe critic. 

I am very pleased that the new staff we added to OCC has 
dramatically reduced the backlog of cases. 

San Francisco's Police Department showed an outstanding 
ability to work with the community this year as youth gang 
shootings erupted, with the tragic loss of 10 lives. 

The efforts of police officers, working with community 
leaders, helped our city to step back from an escalating 

An essential ingredient in establishing meaningful 
credibility for City Hall with neighborhood youth was the 
support of the Chamber of Commerce, Bechtel, Pacific Bell, 
Transamerica, Chevron, Pacific Gas &Electric, Bank of 
America and McKesson Corporation. 

Together they raised almost $100,000 in 48 hours in order 
to help this Mayor respond directly to youth job requests. 

There is now a signed peace pact, as the youth call it, 
between rival Sunnydale and Hunter's Point and Western 
Addition neighborhood youth. 

Incidents of gang violence of all kinds dropped by half 
over the summer months. 

I will continue to meet with these neighborhood youth in 
regular summit meetings in my office. 

Today I an announcing that San Francisco has just been 
awarded an $822,000 federal Health and Hunan Services grant 
for a Youth Gang Task Force to continue our efforts. 

I an also announcing that San Francisco has been selected 
as the nation's denonstration city in the United States for youth 
programs in public housing projects. 

A city that produced the nation's model for battling the 
AIDS epidemic in its first years can do the same thing for 
the youth of our city facing a plague of violence and drugs. 

Overall, we increased city funding by $8 million for 
direct services, including drug treatment and law 
enforcement, in response to crack. 

We also won $5.9 million in federal grants to reduce 
waiting times for those seeking treatment. 

We already contracted for our first residential treatment 
facility for drug addicted women with their first pregnancy. 

We are also going to have to build on our success in the 
early battle against the HIV epidemic so that we can create 
the model for care and early treatment programs. 

At the U.S. Conference of Mayors meeting in June, I 
forecast that new standards of care for HIV would present us 
with our greatest challenge yet. 

The HIV Task Force, which I formed last January, was 
specifically charged with helping us develop a public- 
private partnership to meet this new stage of the epidemic. 

As of today, legislation is on the Governor's desk and 
legislation is before Congress which would expand funding 
for AZT and other drugs. 

Together, this funding would enable San Francisco to 
expand the current subsidy program to nearly all those who 
qualify under new physician guidelines, including those who 
would benefit from early intervention. 

However, I now am informed by the California Department 
of Health Services that we can not use the current subsidy 
program to aid those who could benefit from early 

Therefore, I am asking the State Director of Health 
Services to immediately apply legislation I authored and 
that was signed into law which permits any indicated 
treatment for HIV to be funded in state programs. 

I expect to see new rules allowing wider distribution in 
a matter of days. 

The expanded need for treatment, with costs linked to 
unconscionably high profit-taking by certain drug companies, 
could impoverish tens of thousands of people, and a number 
of American cities — including San Francisco. 

My HIV Task Force executive committee has informed me 
that they will recommend that we seek every possible 
alternative to convince such companies to price products at 
reasonable levels. 

I am ready to accept their recommendation, including 
legal action to force drug prices to reasonable levels, and 
so is the City Attorney. 

Later this month, the HIV Task Force will hold public 
hearings on Standards of Care which can be used by both the 
City and the private sector to establish both an orderly and 
a prompt response to treatment developments. 

We are continuing to expand our model out-of-hospital 
care for those who are ill, and today I am pleased to inform 
you that we have just been notified of an additional 
$700,000 in federal funds for our efforts. 

This past week we opened the first public hearing on the 
homeless plan, "Beyond Shelter." 


For years, homelessness has been treated as a temporary 
problem solved by emergency stays in low-rent hotels. 

Advocates for housing and social services programs 
repeatedly warned the city and the nation that we were 
living in a dream world -- and that we would wake up to a 

nightmare . 

They were right. 

Our new homeless plan is a bold attempt to create 
solutions that last longer than one night. 

In the coming month, the Mayor's Office of Housing will 
release the final Affordable Housing Task Force report which 
will describe how San Francisco can increase the number of 
affordable housing units now being built from the present 
level of about 500 a year to between 1,000 and 2,000 a 

In addition, the city received $6 million this summer in 
HUD McKinney funds for five transitional housing projects 
for the homeless and $8.5 million in HUD Capital Improvement 
Funds to help reduce the vacancy rate and bring hundreds of 
vacant Housing Authority units back on line. 

By this time next year, I expect to be able to report 
that we have brought on line new housing opportunities for 
1,800 people through the Housing Authority by bringing us to 
full occupancy. 

In all, I expect to be able to report that we have 
created housing for 3,600 people who are homeless or at 
serious risk of becoming homeless. 

In the next 90 days, ve will announce requests for 
proposals to use $10 million set aside through Redevelopment 
Agency bonds for housing for the homeless, for lov-income 
renters, and for loans for first-time homebuyers. 

This doubles the city funding for affordable housing, and 
sets a new precedent that we will repeat each year for at 
least the next ten years. 

Further, I hope to be able to announce that we will 
increase this funding even more in the next few months. 

In the next 90 days, we will also complete our temporary 
facility for the winter, and begin the shelter program 
coordinated by the Mayor's Interfaith Task Force. 

This city can be proud of the way the Civic Center crisis 
of July was resolved. 


In contrast to other cities, there was no roust and no 
bloodshed to move people who were vulnerable and without 
long-term resources. 

It will not be the policy of this Administration to roust 
people who play by the rules, no matter how politically 
convenient others may find that approach. 

Today Civic Center park is a place that can be used by 


One recommendation in the Homeless Plan has won near 
universal support, and that is the need to prevent 
homelessness through the loss of housing. 

With that in mind, I urge this Board to approve the 
proposed ordinance tightening the loopholes on residential 
hotel conversions. 

I also give you my strongest recommendation that ve 
produce a law for control on rent increases on vacant 
apartments that is fair to both the landlord and to 

The legislation my office assisted in drafting meets the 
test of fairness. 

Both of these new laws are essential if we are to succeed 
with our city's homeless prevention strategy. 

Negotiations on Mission Bay are continuing, and it 
continues to offer a good opportunity for creating large- 
scale affordable housing for the future. 

The future we want also requires smart, strategic 
planning on how we can create wealth to benefit us all, to 
pay our bills at City Hall, to assure decent wages, to 
support the economic vitality of our business sector. 

Those are not competing interests, but are essential 
ingredients for the interests of all of us in our city. 

This year we negotiated a new contract with city nurses. 

The result is that the registered nursing vacancy rate of 
16.7 percent of last September has dropped to 4.9 percent, the 
lowest level in five years. 

These additional nurses mean that we will be able to open 
additional beds at San Francisco General Hospital, and that 
will generate new income for the hospital. 


Since voters approved Proposition F last year, 
transferring labor negotiations to the Mayor's office, we 
have conducted negotiations on the largest number of 
contracts in a single year in city history. 

Agreements were reached in the first eight months of this 
year on 31 different labor contracts covering more than 
20,000 city employees without any of the strife we have 
witnessed elsewhere in the Bay Area. 

These agreements include an historic new pay equity 
package that retains our commitment to comparable worth 
while assuring its benefits go to those in occupations that 
are historically underpaid. 

Organized labor has met our city needs fully half-way, 
and agreed to contracts that saved the taxpayers more than 
$8 million. 

San Francisco is a better city because of the 
effectiveness and contributions of organized labor, and I 
intend to see that the commitments made to organized labor 
are kept. 

My policy will be to seek and to enforce written 
agreements by corporations committing them to a speedy, 
neutral and fair process for employees to chose whether or 
not they wish to be a member of a union -- whether it 
involves city arrangements on a public pier, a hotel site or 
a ballpark. 

In this city we know how to work well together. 

Last year San Francisco's largest corporations provided 
the resources for the successful school and library bond 
campaigns, helping us move forward as one city. 

This year showed that we also are learning how to plan 
better and smarter with all of us at the table. 

For the first time, the Small Business Advisory 
Commission has a budget and an executive director. 

We can plan with small business how to provide better 
support, beginning with the One-Stop Shop we promised and 
our new publication, "Getting Business Started." 

We showed we can succeed in cutting red tape for business 
with our new film office. 

The result is $16 million worth of new business and 450 
new jobs for local workers. 


We marshaled the strongest yet delegation of business, 
academic, cultural and city leaders to promote our region to 
Pacific Rim nations -- and set a precedent of cooperation 
with San Jose and other regional leaders that we will 
uphold . 

We have followed through with the establishment of "San 
Francisco Family" organizations in major Pacific Rim cities, 
drawing on Bay Area alumni in an imaginative new alliance. 

Next Spring, the $86 million state-of-the-art Fashion 
Center will open to showcase our industry. 

The prophesies of doom and gloom about San Francisco's 
business climate were false. 

We have instituted long-range strategic planning that has 
improved the business climate. 

We have seen companies return to make San Francisco their 

Our tourism and convention business, contrary to dire 
warnings, had its best year ever and looks forward to an 
even better showing next year. 

At the same time that we are working to support private 
sector initiatives, we are developing new strategic plans 
for a city entrepreneurship. 

The Port has been an underutilized asset, and by smart 
development of its maritime and other resources it can 
increase its contribution to our city. 

The new strategic planning it is authorized to conduct 
will move us forward. 

In the coming year, work will start on upgrading our two 
railroad tunnels to allow us to take advantage of container 
shipping growth. 

The Airport Commission also is adopting a master plan. 
Our position as the desirable gateway city to the 
Pacific Rim was strongly underscored this year when United 
Airlines chose San Francisco as the hub city for Asia. 

We are making plans for new economic development in 
Bayview Hunter's Point, with $400,000 available for minority 
and business owners for loans. 

Citywide, we have set aside a $5 million fund for 
economic development. 


We continue negotiations with the U.S. Navy on uses for 
the Hunter's Point shipyard, so that both the ship repair 
industry and the businesses and artists at the shipyard will 
be secure and benefit from new developments there. 

This morning, a committee of the Board learned more 
details of the economic benefits that will come to us from a 
new China Basin ballpark. 

Those projections, which indicate that the city can 
expect to receive over $800 million in income over the 40- 
year contract, are the result of solid and hard-nosed 
analysis by our budget staff. 

The methodology and assumptions have been reviewed by top 
economists in our region, including those at UC Berkeley and 

This represents an outstanding opportunity for our city 
to get a return on an investment that will benefit us long 
into the future. 

Last year at this time, in a spirit of regional support, 
I hung the banner of the Oakland Athletics from the City 
Hall Balcony to honor them for being American League 

The banner that is flying now is the banner of the team that has 
captured the National League Western Division Championship - 
- the San Francisco Giants. 

This comes in the same year that the San Francisco 49'ers 
are the SuperBowl Champions. 

For some, this may seem to be as good as it gets. 

But it's not. 

This coming year is going to be a stand-out again and 

On October 21, ve vill initiate Project Star, which will 
create a new partnership to encourage outstanding students, 
teachers and other educational professionals in our public 
school system. 

I am very pleased to announce that Kathleen Sullivan 
Alioto has agreed to serve as the volunteer director of this 

It is receiving strong support from the business 
community, including the contribution of 70 Pacific Telesis 
employees who are given release time each week to volunteer 
in our schools. 


This coming year we also will begin the planning for the 
Columbus Day 1992 Celebration, when the Tall Ships of many 
of the world's nations will sail under Golden Gate Bridge on 
the 500th anniversary of the day Columbus landed in the new 

Today, I am pleased to announce that Fritz Jewett has 
accepted my request to serve as Chairman of the Columbus Day 

In the next 12 months, San Francisco will be the host for 
the Pacific Cup Regatta race — for the first time. 

In the next 12 months, San Francisco will host world 
business and government leaders when we become the first 
American city to host the Pacific Rim Conference. 

In the next 12 months, San Francisco will bring together 
the world's leading researchers and scientists combating 
AIDS, when we are the host for the International AIDS 

In the next 12 months, San Francisco will inaugurate a 
precedent-setting Festival 2000 that celebrates our multi- 
cultural artists, and which puts the world spotlight on our 
excellence and innovation in the arts. 

Twelve months from now, we will be preparing for San 
Francisco* s first-ever Book Fair, which will put on canter 
stage our publishing industry and our outstanding authors. 

As part of that celebration, I will host a reception at 
the Rotunda for all San Franciscans who publish books in 
1990 -- if the Rotunda can hold them all. 

In the next 12 months, I believe our Congressional 
delegation will succeed in our effort to keep the Presidio 
as we want it. 

No matter what happens, however, I assure you this city 
will be prepared to do the smart planning that preserves 
this treasure as a great legacy in our City. 

It is not an easy task to create a snapshot of a city, as 
Mayors often try to do in a State of the City message. 

Sometimes, in other cities, the picture comes out a 
little blurry because things are just a little bit out of 

But when future San Franciscans look back at this 
picture, they'll recognize any possible blurs for what they 


We're simply moving too fast and none of us wanted to 
stand still for the picture. 

Thank you. 


Office of the Mayor *LS£3»I ISI ART AGNOS 

San Francisco K&W&m&xSSiifflv^l 


S£P ~6 2000 


Mayor Art Agnos UBL/C L/BFMdv 

October 1, 1990 

President Britt, Members of this Honorable Board, and fellow 
citizens of San Francisco: 

One year ago, I presented my report on the State of the City 
as required by our City Charter. 

Less than three weeks later, Nature rewrote the text when a 
7.1 earthquake shook San Francisco and Northern California for 15 

Eleven San Franciscans lost their lives. 

Over $400 million worth of damage was done to city buildings 
and our infrastructure. 

Thousands were left homeless in the Marina, South of Market, 
and other parts of our city. 

The damage to the private sector was estimated at $2 billion. 

Because we were in the midst of an unprecedented San Francisco 
Bay World Series, it all happened on prime time television 
broadcast to every part of the nation and indeed many parts of 
the world. 

And what the world saw can make us proud of San Franciscans. 

As I travel about this nation, I've discovered the picture 
frozen in the minds of people who saw us during those days are 
not pictures of flames and a broken bridge. 

What they remember seeing was a city of neighbors helping 
neighbors. .. forming citizen brigades to bring fire hoses from the 
Bay, walking in dark streets with flashlights to look in after 
each other, climbing highrise staircases to bring food to the 
elderly and disabled, and checking gas lines at neighbor's homes. 


(415) 554-6141 

City workers from every department were equally heroic, 
returning to help staff emergency homeless shelters, walk sewer 
and water lines, and staff health centers and do whatever was 
necessary to care for the city. 

Members of this Board of Supervisors and their staffs 
coordinated and supported volunteer offers that poured into our 
City... while also responding to all the other public needs around 
the clock. 

What has been accomplished in these past 11 months is 
remarkable — but it must not lead us into the mistake of 
forgetting that there are still many for whom recovery is months 
or years away, and that they continue to require our strongest 
and best efforts. 

A year later, we still must meet the challenge presented by 
the soil study in the Marina. 

We must build a solid embankment so that residents on 8th 
Avenue can return to their homes. 

We must step forward with city loan programs where we can to 
help the small business that the U.S. Small Business 
Administration turns away. 

We are working to stretch every possibility to bring 
assistance to our city — whether it is how funds were disbursed 
by the Red Cross, or rewriting federal and state law on 
reimbursements for nonprofit agencies. 

Where those efforts still do not stretch enough to meet the 
needs of San Franciscans, we will use the Mayor's Earthquake 
Emergency Fund to do all that we can to close the gap. 

October 17th showed the world that we are made of the right 

At the same time, it taught us that not everything should be 
put back the way it was — whether it is an Embarcadero Freeway, 
homeless shelters or our emergency response system. 

We should look at better and newer ways to do things or to 
rebuild things so that they are safer than before. 

What we have learned will make San Francisco better fitted for 
the task should such skills be needed again. . . 
better prepared and better equipped. 

Today, 11 months later, San Francisco has: 
o a second, more powerful fire boat 
o 65 portable fire hydrants, compared to 2 in 1988. 
o an emergency water connection in case of Hetch Hetchy 

o 13 new fire trucks on' line or about to be delivered. On 
October 17th, our need was so great that we had to take a fire 
truck from the museum to rush aid to the city. Our new purchases 
nearly equal what the city bought between 1983 and 1987. 

o two new ambulances 

o and new first aid supplies at every fire station. 

We now have earthquake information in eight languages and 
arrangements with television stations for signing for the hearing 

We have established the first Neighborhood Earthquake Response 

Throughout the city, we are organizing trained teams in each 
of the city's ten fire divisions, drills at all our hospitals, 
and a guide to all the city's fire stations, shelter sites and 
first aid centers. 

A registry of elderly and disabled citizens is being compiled 
by the Health Department, and some 2 00 Department of Social 
Services employees have been trained for emergency shelter work. 

All city departments will have a joint earthquake exercise on 
October 23rd, and we have reconvened the Disaster Council as a 
working entity. 

The review of existing policies and procedures to make 
government more responsive to a natural disaster took place in 
the State Capitol and the nation's capitol as well. 

New California law means the state picks up costs for both 
local and state matches to be eligible for federal disaster 

This saved us $3.5 million. 

Today, San Francisco has received about $30 million in 
reimbursements . 

But our recovery requires that we recover as a region. The 
Loma Prieta quake didn't happen to us alone... and we're not going 
to recover alone. 

Accordingly, I have made our staff available to other local 
governments to help them in securing federal aid. 

I'm cautiously optimistic from recent numbers that our city's 
economy has rebounded. 

The State Board of Equalization reports that our retail sales 
have returned to pre-quake levels. 

The California Economic Department reports that we had the 
largest growth in employment last year since 1984 — and that our 
unemployment rate stands at 4.0 percent, lower than both the 
state and national levels. 

The Convention and Visitors Bureau reports that last June we 
had the highest level of hotel occupancy in our city's history. 

If the events of October 17th put a focus on what we can do, 
then the deficits at both the state and federal level puts a new 
focus on what we must do as a city. 

San Francisco is not an island, removed from the catastrophic 
effects of budget cutbacks in Sacramento and Washington. 

Members of this Honorable Board, notably Supervisor Kennedy, 
along with our city controller, Sam Yockey, our lobbyist Hellan 
Dowden and members of my staff, were able to join in convincing 
the state legislature to trim back some of the most severe cuts 
facing our city's health programs. 

We worked closely with San Francisco's delegation... 
Speaker Willie Brown. . .Assemblyman John Burton... and had 
bipartisan support with Assemblyman Bill Baker and members of the 
Governor's Administration. 

This past week, Governor Deukmejian signed the legislation 
which restores $12 million to San Francisco. 

I have placed a proposal before this Board to close the 
remaining gap of $13.7 million through $6.9 million in spending 
reductions and $6.8 million in additional revenues. 

I respectfully urge its passage by this Board. 

This proposal meets our current budget need. 

But what we have accomplished is a brief respite — and that 
is all. 

San Francisco must restructure its government and redefine 
priorities with the knowledge that we will increasingly have less 
and less state and federal aid. 

That means that we must target to get the federal and state 
dollars where the need is most critical. 

This past year, we more than doubled the federal grants coming 
to our Housing Authority, from $8 million last year to $18 
million this year. 

We have, even in these tight times, increased AIDS funding by 
$10 million — to $58 million — with a combination of increases 
from city, state and federal funds. 

With new settlements from federal officials and the Red Cross, 
we will have obtained $11 million for our multi-service centers 
for the homeless. 

That means that the complete renovation we anticipated can be 
accomplished without new city funding. 

But as much effort and expertise as we have brought to bear on 
these issues, we remain dissatisfied. 

San Francisco has been in the forefront as a center for the 
development and investigation of new treatments for HIV. 

This year, San Francisco will near completion of an AIDS 
Research Center at San Francisco General Hospital that will be a 
f irst-of-its-kind in the nation — a $10 million facility devoted 
exclusively to HIV research. 

New treatments now are proving helpful — but what medicine 
has put within reach, congress has locked out of reach. 

The Ryan White AIDS bill, which would have provided $2 
million in federal funds for early intervention and other HIV 
programs, is still blocked in a U.S. Senate committee. 

The business community, particularly Levi Strauss Corporation, 
have repeatedly lobbied Washington on behalf of those with HIV 
who could benefit from this help. 

For whatever reasons, Washington has decided that the lives of 
thousands of us are not a priority — and that is unacceptable. 

The solution we must work for in a national health care 
insurance program. . .and this week I will offer testimony to a 
special hearing in San Francisco to express our city's strong 
advocacy of health care for all. 

What we can do, we will do. 

This month we move on important recommendations from the 
Mayor's Family Policy Task Force. 

I will speak before the San Francisco Civil Service Commission 
in favor of Family Care Leave for our city workers. . .allowing 
unpaid leave to care for an ill family member. 

No city worker should have to choose between their job and the 
need to care for an ill parent, spouse, child or family partner 
for lesbian and gay couples. 

We also will write new rules to allow city workers to pay 
health insurance premiums for children they care for, and for 
their lesbian or gay family partner. As many as 5,000 children 
now without coverage can be included. 

You and I will be in partnership in. this effort, because this 
Board has a representative who serves on the Health Service 
System Board which will make these changes. 

Much of what we have accomplished came about because we were 
dissatisfied with the status quo. 

There are critical issues affecting life in our city that have 
been stalled, and where action is overdue. 

I want to add 80 more police officers this year to bring our 
uniform patrol to full strength. 

I will present to this Board a plan from the Chief of Police 
that will provide additional officers as fast as they can be 
trained and hired. 

These new officers will go into neighborhood police stations 
as part of a community policing program. 

Mr. President, Members of the Board. . .there 's only one way to 
do it. 

I salute Supervisor Walker and Supervisor Gonzalez for their 
coauthorship of transfer tax legislation in its original form. 

I think we can build on this goal and make it even better. 

It's not with press statements and not with press releases, 
but with your votes for the revenue so that we can pay for this 

I want San Francisco to meet our obligation to build 
affordable housing. 

Overall, we have committed to building 1,854 units in the city 
— compared to 1987, when we built only 342 units. 

As strong as the measure of our improvement has been, I stress 
to you again — the true measure is whether we are meeting the 
need of San Franciscans — and the answer is that we are not. 

The facts speak for themselves. 

The City has 333,000 households. 

Some 41% earn less than $33,000 a year. 

Another 60,000 San Francisco households have incomes of 
$55,000 a year or less. 

That means they could afford to buy a home for a maximum of 
$150,000 a year. 

But the median price for a San Francisco home is $290,000 a 

It is time for San Francisco's City Hall to face up to the 
realities that our citizens already must face every day. . . 
and it is time for us to do something about it. 

The transfer tax I will propose. . .building on the Walker- 
Gonzalez model... can produce more housing than ever before. 

All that is needed is the political will in this City Hall. 

While no tax is wonderful, I believe the transfer tax to be a 
reasonable, justified source of revenue for new police services 
and affordable housing. 

After a $300,000 exemption for the small homeowner, this would 
capture at the time of sale, a fair and modest portion of the 
proceeds of expensive homes and especially from the sale of 
commercial and investment properties. 

Seventy-five percent of this tax will be paid from the sale of 
downtown commercial buildings and investment properties. 

Just last week, a building sold for $30.5 million to an out- 
of-town investor. If we had this transfer tax in place, this 
would have meant an additional $220,000 to the city. 

For those who would argue that this would depress sales, I 
would remind them that this would represent only one-tenth of the 
normal real estate commission. 

In the example of a home just above the exemption level — at 
$310,000 — the increase tax would be $1,375, again less than 
one-tenth the expected $18,600 real estate commission on the 

There is another stalemate that also must be ended this year. 

It's time to stop stalling on providing a fair share of city 
contracts to minorities, women and locally-owned businesses. 

San Francisco city government is failing the grade in keeping 
our own promises to open opportunity. 

One year after San Francisco passed a state-of-the-art 
MBE/WBE/LBE ordinance to meet new U.S. Supreme Court guidelines, 
we have the data to tell us how well we meet our goals. 

And the city's record of compliance is shocking. 

The city set a goal for women-owned business enterprises in 
eguipment and supplies contracts of 15.5%... but all we provided 
was 3.8%. 

We set a goal for Asian-owned business enterprises in the same 
category of 18.7%... but only came up with one percent. 

The goal for African American-owned business enterprises was 
11.8%... and here we only came up with 1.2%. 

I find that unacceptable. 

Accordingly, I will shortly sign an executive order on 
MBE/WBE/LBE that holds our city's departments accountable for 
good faith efforts to meet these goals. 

If necessary, I will have departmental progress towards these 
goals reviewed weekly. 

Poor performance under the ordinance will be an important 
factor in determining all budget requests for each fiscal year. 

There is a reason why we rejected "business as usual" in our 
contracting approach — because the results meant that the city 
wasn't getting the participation of a major portion of our city's 
business community — the portion that is not male and not white. 

For too long, "business as usual" also meant taking business 
for granted in our city. 

Neighborhood businesses were dissatisfied. .. and San Francisco 
was gaining a reputation as the city that was losing business 
because we didn't know how to work well and work smart together. 

That had to be turned around. 

Our MBE/WBE ordinance also includes preferences for local 
business enterprises — which support our city with the small 
business fee they pay, and with the economic spur they provide 
our economy. I intend to see that we monitor our goals there 
just as closely as other goals. 

I also want to see support for such neighborhood development 
projects as we have started on the 24th Street corridor in the 

This summer, the San Francisco Fashion Center opened. . . 
showcasing the largest manufacturing industry in our city and the 
designers that are giving us a worldwide reputation. 

This will be the city's first strategic alliance with the 
European Community — helping to position the city for the 
economic union of the EC in 1992. 

Already we have signed an agreement with the economic 
leadership of Madrid for joint promotional efforts. 

We have been equally ambitious for our fishing industry... 
and won the Governor's support for $2 million to restore and 
expand our fishing industry at Pier 45. 

The waterfront is not a preserve for the leisure class, but a 
working part of San Francisco's economy that must be allowed to 
grow into the 21st century. . .and the Port Commission is providing 
us with wise approaches that I support. 

Our outreach to the Pacific Rim. .. including serving as the 
host city for the first-ever Pac Rim Conference in the United 
States. . .reinforces one of San Francisco's strongest links to the 
fastest-growing part of the world economy. 

Just as we have needed to rethink the status quo on economic 
development, we have equal reason to be dissatisfied with our 
city's system for determining wages and benefits for city 

It is outmoded, unequal, and inappropriate to our worker's 
needs and our city's needs. 

I have appointed a Collective Bargaining Task Force to 
recommend an overhaul of our system. 

We must allow for collective bargaining with city employees 
over health and dental benefits as well as pay. . . 
and we must end the salary standardization ordinance that causes 
our budget to rise regardless of our budget position. 

These issues bring into clear focus an on-going concern that 
too often, City Hall initiates steps without knowing what the 
bill will be. 

I strongly support the measure Supervisor Ward introduces 
today that requires a fiscal analysis of all proposed 
legislation. . .and that the bill's author identify where the money 
will come from to pay for the new proposal. 

When the buck starts here, somebody here ought to say where 
the bucks are coming from. 

I also respectfully recommend to this Board that you adopt 
legislation to require that any proposed legislation or 
substantive amendments be in print long enough for the public to 
review it before it is passed. 

When legislation is written and passed the same day, there is 
no opportunity for citizens to participate in the decisions and 
limited opportunity for review outside this room. 

We must respect the right of the public to be informed and to 
hear the budget consequences of our decisions. 

For the first two years of my Administration, we worked to 
close a budget shortfall without the benefit of surpluses. 

At last year's State of the City, we projected that for the 
first time in more than a decade, we could meet existing costs 
with existing revenues — providing the revenue package was not 

This Board chose program cuts and tax reductions. 

Since then, we were hit by the trickle-down of the state 
deficit and the shaking up of the Loma Prieta earthquake. 

In almost all respects, the city budget we have today is 
vastly different than we had three years ago. It spends more 
money on concerns that merit our highest priority, and it 
carefully prunes back on other areas. 

This past year, for the first time in more than a decade, I 
convened neighborhood budget hearings to hear citizen proposals 
on spending and cuts. 

It was a start, and it demonstrated that people in our 
neighborhoods want an opportunity that is on a par with the 
advocates and lobbyists for whom City Hall is familiar territory. 

This year we're going to start even earlier — indeed, we're 
starting next month with a Task Force targeting specific areas of 
importance to our neighborhoods. 

Other cities may tighten belts and make do. 

Other cities may accept that there will not be enough police to 
go after criminals. .. and that modern city life requires you to 
accept a certain level of crime. 

Other cities may accept litter. . .graffiti. . .health cuts... 
you name it. 

San Franciscans aren't going to accept that... and they aren't 
going to accept it from us, either. 

We aren't other cities. 

We are the city that didn't want to put up with 9,000 
abandoned cars on our streets — which is what we had three years 

Today abandoned cars are picked up within a week of receiving 
a call. 

We are the city that two years ago saw a Housing Authority 
with a high vacancy rate, boarded-up units, and a debt owed to 
the federal government. 


Today the Housing Authority is debt-free and has an occupancy 
rate of 99%. 

We have been dissatisfied for more than 30 years with an 
Embarcadero Freeway that should never have been built... 
but which had its uses. 

Now it doesn't. 

The difference is safety for those who would use it. 

This Board is to be congratulated for its vote to tear down 
the Embarcadero Freeway. 

We are the city that was dissatisfied that there was no public 
access to our waterfront through our piers. 

In the next few weeks we will officially open Pier 7 — The 
Port of San Francisco's first public access pier into the Bay. 

We are dissatisfied with the opportunities for youth and 
programs for children in our city. 

Last year, I spoke of the start-up of the Youth Employment 
program — and now it is in place. The corporate business 
community has provided strong support for second youth employment 
program — Team 90 — and been willing partners with us. 

Today, we also have received approval for a $500,000 federal 
grant this year, and funding over five years for an expected 
total of $2.5 million, to include establishing a citywide Youth 
Council to advise city departments and the Office of Children, 
Youth and Families regarding youth services and concerns. 

We are the city that was dissatisfied with proposal after 
proposal for Yerba Buena Center across from Moscone Center. 

Last month, we finally closed on an agreement everyone can be 
proud of after 12 years of stalling and stalemates. 

We were dissatisfied as well with the proposals for Mission 
Bay. . .because it did not have the level of affordable housing 
that we wanted. 

Now there is a proposal before this Board and going to the 
voters to begin San Francisco's newest great neighborhood. 

The new proposal also reflects the people's dissatisfaction 
with my own recommendation for a Marina-style playing green and 
instead proposes a wetlands. 

I accept their decision and want to see it done. 


Last year, I expressed to you my dissatisfaction that Office 
of Citizen Complaints findings could not be heard directly by the 
Police Commission. 

This past week, the Police Commission announced that it will 
hold hearings in the next few weeks on a new policy to bring OCC 
findings to the Commission. .. and also bring us a process that 
earns full public confidence that we will be fair no matter where 
wrongdoing occurs. 

We are the city that was dissatisfied with a Main Library that 
has been filled to capacity since 1942. 

Tomorrow, we will unveil the model of a new San Francisco Main 
Library for our Civic Center. 

It will be the second unveiling in a month of a major new 
cultural institution for our city — coming after the much- 
heralded design for the new Museum of Modern Art. 

This month, San Francisco will host our first-ever Book 
Festival . 

It will be a true San Francisco production — from book arts 
organizations which will demonstrate how they make paper, to San 
Francisco 49'ers recognizing the Kids All-Pro Reader Team — to 
Ken Kesey and the cutting-edge authors of the 1990' s. 

When you entered City Hall today, you passed under a banner 
that celebrates Festival 2000 — a city-sponsored multi-cultural 
offering that is unprecedented in America. 

It will present 15 world premiers in music, dance, theatre, 
performance art, film and video — each an expression of the 
diversity of our city's cultures and communities. 

It will reach into all our neighborhoods, with more than 3 

When this year ends, so also will end the service of three 
members of this Board who have served our city with commitment, 
energy and a deep affection for their fellow San Franciscans. 

I salute Supervisor Nancy Walker. . .Supervisor Wendy Nelder and 
Supervisor Richard Hongisto. 

Our city is a better place because of your service here. 

You have reached into the lives of your fellow citizens with 
practical and real programs that helped the sick, cared for 
children, made the public safer, and opened up new opportunities 
for people. 


Not all of those efforts have made headlines, but their 
importance is how they have succeeded in being written into the 
fabric and values of our city. 

Just over three months ago, San Francisco was honored to host 
the visit of President Mikhail Gorbachev of the Soviet Union. 

His visit to us was seen as an important statement about the 
San Francisco Bay Area. .. including our economic strength and our 
place in a changing world. 

For San Francisco, it was an exceptional opportunity for us to 
show the world our city at a shining moment. 

Just as, months earlier, we rallied to San Francisco with the 
sure knowledge that there is no other city on earth for us... that 
June day of President and Mrs. Gorbachev's visit the world could 
see why we love our city. 

During lunch that day, President Gorbachev leaned over to me 
and said: "If God were to paint a picture of a beautiful city, it 
would look like San Francisco." 

I was pleased for our city... but I was struck by another 
thought as well. 

It is that... if God were to choose the people to live in such 
a city... they would be San Franciscans. 

Not because we are better than anyone else. . .because we are 

But because we are made up from the peoples of the world of 
every background, representing every community, and without each 
of us, this city would be less than it is. 

On October 17th, 1990, we will remember what happened one year 

We will remember the losses... the hurt and the harm. 

We will mourn with our neighbors because we care about each 

But we will also celebrate a city that stood firm and emerged 
strong from our trial, and anxious to get things done to make 
this a better city for us all. 

Thank you. 


Office of the Mayor 
San Francisco 


Mayor Art Agnos 
October 7, 1991 



NOV 1 9 1991 

SArt FRANC :0 

President Ward, Members of this Honorable Board, and fellow citizens 
of San Francisco: 

We are poised at the edge of the most significant national discussion on 
the role of cities in America in a generation. 

Thirty year's ago, American cities were the embodiment of American 
hope — as centers of commerce, as treasure houses of our cultural 
resources, as leaders in higher education and access to health care, ;uid 
most of all, as ports of entry for those seeking to lead a life of their own, 
free of poverty or prejudice, which was denied them elsewhere in America 
or elsewhere in the world. 

Today, cities are where Americans suffer the most in our country. 

All of us know the facts and the consequences too well to require 
repetition: from children's measles inoculations to housing, from health 
care to community development programs, a calculated decision left cities 
with growing unmet needs while cutting back funding from successive 
administrations in Washington and Sacramento. 

San Francisco's own situation has been compounded by the worst 
drought in state history and the biggest earthquake in 83 years, which hurt 
our economy and city revenues, at a time when we were without the 
benefits of surpluses to make up the difference. 


(415) 554-6141 


I can report to the Board and the people of San Francisco the response 
of our city to the challenges of this past year, and the goals for the 
coming year. 


We have fared better than our neighbors, the state or the nation 
through the recession. 

Unemployment grew twice as much in California as it has in San 
Francisco, and retail sales have held nearly steady in our City, while 
dropping in the Bay Area, Los Angeles and the rest of California. 

The economy had a worsening effect on the state budget. The Board's 
Finance Committee performed in the best interests of the city, and its 
work was made easier by our city's delegation to the State Capitol, 
particularly with the leadership of Speaker Willie Brown. Supervisor 
Ward's pay-as-you-go legislation which requires Finance hearings on 
legislation with an impact on the city budget also is giving us better 

Our office vacancy rate stood at the second lowest of the top ten U.S. 
office real estate markets, and a recent Wall Street Journal article singled 
out San Francisco as having a "healthy downtown" as a result of our 
growth control policies. 

In contrast, other cities succumbed to overbuilding and face a 
vacancy rate that is considered disastrous for their economy. For 
example, in Los Angeles, it will take 41 years for that city to recover to a 
normal vacancy rate, according to the Wall Street Journal. 

San Francisco's new VDT worker safety law was fashioned with 
business and labor sitting down together, and the Board's support for the 
solution we crafted made this a model for progressive workplace safety 
without an unreasonable implementation. 

Convention visitors, part of our major industry, are affected by the 
recession. A recent article on the coming American Bankers Association 
convention in San Francisco noted that attendance is expected to he about 
half of what had been normal because of the banking industry's financial 

On the other hand, tourists, who are the major part of our number one 
industry, have increased. The result is an overall increase last year of 
about three percent in overnight stays, and a five percent increase in 

While our City's diversified economy and favored position spared us 
some of the worst effects of the nationwide recession, obviously we have 
felt it. 

We are attempting to address those needs: 

o The Moscone Center's first-stage expansion is complete, and the 
final stage doubling its capacity will be finished next spring. This week the 
California State Bar announced it was switching its convention to San 
Francisco. Our programs aimed at making San Francisco hospitable, such 
as airport information kiosks and special MUNI passes, pays back to the 
city by helping the economy and bringing increased city revenues to meet 
service needs in the city. 

Last week, San Francisco was named the Best City in the world by 
20,000 readers of Conde Nast Traveler's Magazine, with the award 
presented before the world's largest convention of travel agents. This was 
the first time any American city had been chosen as the Best City in the 

o The City secured an Enterprise Zone designation, one of three in the 
state. This will enable existing business and new business in the Enterprise 
Zone areas of the City to receive tax credits for job creation and low 
interest loans. 

The program is designed to specifically create jobs for those who are 
most disadvantaged: those on general assistance, AFDC, SSI, and 
disadvantaged youth and others. That means those who are homeless, poor, 
minorities, women raising a child alone, or handicapped. 

I have asked Sam Yockey, our city's finance director, to develop a 
proposal for your consideration to roll back San Francisco business and 
payroll taxes that would otherwise be due because of new job creations for 
those participating in the Enterprise Zone. By using the federal and state 
certification process, San Francisco can extend our own tax benefit 
without adding an undue administrative cost to the city. Since the tax 
rollback is based on new jobs not projected in our city budget estimate, 
this step will not affect our projected city revenues. 

The recession adds to the burden of the chronically unemployed or 
unskilled. The City is starting some new efforts at building job skills for 
those most in need. 

A new program for teen mothers through GAIN is winning statewide 
recognition, but more importantly, is working for the young women who 
participate. The youth employment program was successful at giving first 
job experiences to many minority youth. Our homeless program now has 
support services that includes job training. 

o Last October, I issued my first Executive Order, which demanded a 
better performance by city departments to provide a fair share of 
contracts to minority, women and locally owned businesses. Supervisor 
Kennedy authored new legislation which gave us firm direction. 

Prior to the law, there were only 9.5% minority owned business 
participation in construction contracts from the Department of Public 
Works. In the year just ended, 9.5% became 22%. Prior to the law, there 
were only 0.2% women-owned business participation in these construction 
contracts. In the year- just ended, 0.2% became 7.4% of the contracts. The 
new Embarcadero roadway is being planned and designed with more than 
35% participation by minority and women-owned businesses. Civic Center 
building seismic upgrades will have at least 40% participation. The 
Airport has 29% participation in all its contracts. 

Fairness in the workplace is in the interests of all San Francisco. 

The Commission on the Status of Women has now developed a system 
for tracking all discrimination complaints filed by women in the City. 
This is a step forward in identifying patterns of discrimination. 

Last week, Governor Wilson vetoed a measure to provide the same 
statewide protection for lesbian and gay employees as other people 
vulnerable to prejudice receive. San Francisco will continue to support 
and urge passage of this legislation as essential to the well-being of our 

San Francisco's economic future requires us to build on our 

In a physical sense, those advantages include such assets as the Port, 
which has doubled its cargo handling in the past year. Our port was the 
fastest growing container shipping port of the Top 20 American ports, and 
we moved from 20th place to 12th in one year. 

Next week we begin demolition of the earthquake damaged fish 
processing facility, with $10 million lined up to replace it. 

Our interest does not stop at the water's edge. 

A week ago, I opened our city's first International Trade Office in 
Taipei. Most overseas trade offices seek to win foreign investment for the 
sponsoring city or state. We seek to win customers for San Francisco 
services and products, and so we have created a unique new service. Its 
primary beneficiaries will be medium and small size businesses here at 

On October 1st, the City began taking over the Hunters Point 

For twenty years, these 550 acres have produced little economic 
benefit for the neighborhood or the city. 

The lease we have proposed calls for those portions of the shipyard 
which are toxic-free to be leased to the City, and as toxic clean-up 
continues, for the newly-cleaned portions to be leased to us. 

Small businesses and artists provide nearly 500 full and part-time jobs 
at the shipyard. We will renegotiate their leases to give them stability, 
and we will look at the additional unused space to help small businesses, 
expand employment and generate additional tax revenues. 

We have obtained a license for Drydock 4, the largest drydock at the 
shipyard worth a half billion dollars. Our intent would be to then lease it 
to private concerns involved in ship repair so that we can maintain and 
assist a valuable resource in the city. 

I have appointed a Hunters Point/Bayview Economic Task Force to 
determine long-term development uses for the shipyard. It is my 
instruction to the Task Force that any development must serve the needs 
of the surrounding Bayview/Hunters Point community, including direct 
benefits of housing, jobs and economic stimulation, as well as account for 
the needs of the artists, artisans and small businesses already operating at 
the Shipyard. 


For nearly two decades, we have been locked into a salary system 
that was inflexible for city workers and the city budget alike. 

Efforts to win reform have floundered under charges that past 
proposals were too one-sided. 

This year, for the first time, we are presenting a ballot measure 
which has the support of labor, business and City Hall. The successful 
negotiation, with Supervisor Shelley playing a key role, is now Proposition 
B. It will replace the existing system with a collective bargaining 
arrangement that allows negotiations on benefits as well as pay, and which 
offers us the opportunity to create a pay and benefits package which is 
more responsive to today's workforce as well as our budget constraints. 
The agreements represent the commitment of some 17,000 City employees 
to work with us. 

City employee unions, recognizing the urgent need for reform, also 
agreed to accept a wage freeze during this year so that the city would not 
have to cut back further on services. 

We also are proposing three charter amendments for civil service 
reform that will help us reshape the work environment in the best 
interests of city workers and the city. 

A final proposal, first put forward by Supervisor Hsieh, establishes an 
early retirement program that will reduce the city workforce but 
safeguard essential positions such as those who protect our health and 

Among other changes made this year, the city now accepts 

domestic partners arid their dependents on the same basis as married 
spouses for city worker health plans. The city also adopted new 
bereavement, family care and religious leave plans that recognize the 
need of city workers to care for loved ones, including spouses, parents, 
children and domestic partners. 

Voters should uphold the registration program they approved in the 
last election by voting "No on K" in recognition of our diverse families, 
including lesbian and gay families. 

This year, as we filled essential positions, over 57% of those hired in 
permanent positions were minorities, and over 46% were women. 

On another front, labor negotiations with the Police Officers 
Association began under the provisions of last year's Proposition D in 
February. On June 17th, the POA declared an impasse after we declined 
proposals costing $90 million over the next three years. The parties have 
not yet selected an arbitrator. 


To battle against high housing costs, San Francisco employs a number 
of strategies, which benefit over 400,000 of the city's 740,000 residents. 

Over 377,000 tenants are protected through rent control, and 
Supervisor Ward's legislation insures that exhorbitant rent increases aren't 
levied when a rent-control unit becomes vacant. That measure is now 
subject to a repeal effort as Proposition M on the ballot, and I strongly 
urge that it be upheld with a "yes" vote. 

Nearly another 20,000 tenants live in housing that received federal 
assistance. That housing is now threatened as the program expires or 
owners repay the loans. 

We are providing more than $10 million over the next five years to 
help tenants and non-profit agencies purchase these at-risk huildings, and 
the Board has passed legislation requiring owners to give advance notice of 
their intentions. 

The Housing Authority has completed the first new housing 
development in many years, and will formally open the Robert B. Pitts 
Plaza this month. In the coining year, San Francisco will receive an 
additional $24 million from the federal government for modernization of 
existing housing — almost doubling our three-year total to $50 million. 
Sunnydale's first phase will begin shortly at a cost of $13 million. 

We have spent $24 million of local fimds and leveraged this with 
another $97 million in state and federal dollars to build new affordable 
housing. Since 1980, San Francisco has increased housing construction 
three-fold. This is in marked contrast to the Bay Area as a whole, where 
housing starts dropped in half over the past five years. 

We are completing the long-awaited exchange with City College 
which will allow City College to receive Balboa Reservoir in exchange for 
land they own at 17th and Folsom, and which we can develop for 
affordable housing. 

Further, a different parcel of land at Phelan Loop will be developed 
for affordable senior housing if voters uphold the plan in November 
balloting — and I urge them to do so. 

The most significant addition will come through Mission Bay under the 
plan approved by the Board earlier this year. The 300-acre project 
includes over 8,000 housing units with 40% of them to be affordable to 
those with low or moderate means. 


For the second year in row, our MUNI system received a Five Star 
Rating by the California Transit League — the only city in the State to be 
given the top rating for service, cleanliness, reliability, hours of operation 
and frequency of service. 

But we need to work on better safety, graffiti clean-up, and better 

Ridership on MUNI increased six percent over the previous year. We 
went from 70% compliance to a full 100% compliance in making buses 
handicapped accessible. 

The expansion of paratransit services, including the addition of new 
taxi services, helped increase the number of elderly and handicapped using 
paratransit services by nearly 200,000 trips — to nearly 725,000 this past 

The new graffiti cleanup program brought the number of buses with 
major exterior graffiti down, and interior cleanups now are making some 

Additional city funds pay for more police services on MUNI routes to 
add to passenger safety this year. 

In the coming year, we will add 30 new articulated trolleys, and in the 
next month we will begin taking up the Embarcadero South tracks as we 
proceed with new transportation changes. 

At week's end, we will celebrate the final demolition of the 
Embarcadero Freeway — a blight on our waterfront for 25 years. 
Supervisor Maher's legislation has pushed forward the city's interest in 
better planning for the Central Freeway replacement. 

The need to improve neighborhood parking is seriously affected by the 
growing number of ears in San Francisco. In the last 12 months, the city 
towed nearly 6,0") abandoned vehicles off city streets. We are 
constructing a new garage at Polk and Bush, a new lot at California and 
Steiner, and we have acquired property for a Vallejo-Churchill Garage. 


San Francisco's ability to respond to heart attack victims and other 
emergencies were reason for serious concern in the past. 

Today I can report that we have doubled the survival rate of heart 
attack victims. With 21 ambulances, the most eve* in our city, and an 
increase in paramedics who now have a vastly improved facility in a new 
building, we have cut response time by 25%. The Health Department and 
Fire Department joint effort also has given training to 1,100 firefighters 
in defibulators which now are on every fire engine. 

Supervisor Gonzalez led the effort to create a 911 Task Force, which 
has made recommendations we are now implementing. Our 911 emergency 
call system will get needed help as 10 more dispatchers begin training next 
month. We also have added three more supervisory dispatchers, and 
authorized overtime under the new dispatchers finish training and bring us 
to full staffing. Their workplace is also being modernized. The current 
average time to pick up a 911 call is two seconds, and fewer than five 
percent of the calls take longer than the 10-second maximum set by state 

At the Fire Department, we have added more firefighters, bought 
more equipment, added new hazardous waste protection, and strengthened 
our ability to rescue people at sea or in high rise buildings. 

In all, we hired 107 new firefighters, received 12 new pumpers, four 
new aerial trucks, and ordered four more pumpers and two more aerial 
trucks for this year. 

In January, we put into service a state-of-the-art hazardous 
materials truck, with special training for firefighters to respond to toxic 
spills on our streets and in our neighborhoods. 

The Fire Department now has mobile air units that can deliver oxygen 
to anyone trapped in a highrise, and has trained 29 firefighters in cliff and 
high rise rope rescues. Some 75 firefighters have now been trained as Surf 
Rescue Swimmers, and we shortly will have two jet skis for water rescue. 

The total number of fires last year dropped slightly, the result of 
providing more education, fire prevention, field inspections. 

This year the Police Department will be brought to full strength at 
district stations and on walking beats in neighborhoods. A total of 124 
new police officers will graduate, with the first 44 graduating on 
November 19. At the end of the fiscal year, we will be about 40 officers 
down, or one class, of the authorized strength of the entire Department. 

The community policing program, which started two years ago as an 
experimental program in the Mission, now has been expanded to all eight 
district stations. There are now 52 permanent beats with over 250 
officers trained for beat work.The officers formerly in Community 
Relations centralized at the Hall of Justice were transferred to district 
stations where they could be in the neighborhoods as part of the 
community policing program. 

With a new reporting system that insures major felonies are entered 
into the system on a priority hasis, we can see that sueh major erimes as 
homicide and rape are down between 20% and 30%. The Police 
Department also expanded the Investigations Unit to 24-hours and 
seven-days a week so that there will be no "off hours" in responding to 
criminal investigations. 

Hate crimes target more than the individual victim. They are crimes 
aimed at victimizing entire communities. 

This year, Chief Casey added the first investigators to our previous 
system of tracking hate crime complaints. As a result, the unit now has 
successfully brought its first hate crimes cases to trial, and won 12 felony 
and misdemeanor convictions, with 27 more cases pending in court. 

To further strengthen our effort, the San Francisco Police 
Department established the Hate Crimes Investigators Association of 
Northern California to facilitate tracking of hate criminals throughout the 

Domestic violence is the leading cause of homicide in our city. It also 
causes over 375 women a year to seek emergency shelter, and nearly 340 
children needed our help. 

This year the Commission on the Status of Women completed a major 
investigation of the Veena Charan case, a young woman who had obtained 
a restraining order against her husband, but who still did not get the 
protection she needed. She was murdered by her husband at her child's 
school in front of the class. 

The Commission on the Status of Women identified steps we need to 
take, involving the Police Department, Department of Social Services, 
Adult Probation, the Courts, and other bodies. 

Their proposals have heen well received hy city departments, and we 
are moving to implement them. I congratulate the Commission and its 
committee for its dedication and hard work which will help us prevent the 
kind of crime which cost Veena Charan her life. 

This year the Christopher Commission examined police procedures in 
Los Angeles following a horrifying beating by police officers. As part of 
the Christopher Commission work, several representatives came to San 
Francisco to study our police policies. In their final report, virtually all 
the recommendations they made for changes in the Los Angeles police are 
already in place in San Francisco, notably the community policing program. 

The community has a right to be both protected from crime and 
protected against misconduct by any officer. Last year I indicated to this 
Board that I would seek a new method of bringing OCC complaints to the 
Commission which would recognize the independence and integrity of their 

We now have a "verified complaint" procedure that will no longer 
allow a Chief to stop a disciplinary hearing by the Commission. Improved 
work by the OCC itself also brought a four-fold increase in sustained 
complaints, from two percent to eight percent — a figure more in keeping 
with aggressive and thorough investigations. 

The Police Discipline Task Force has asked for additional changes, 
including more openness of the OCC process and records as well as 
increased staffing. I support those recommendations. 

We also have improved on our responsibilities for dealing with those 
convicted of crimes. Juvenile Hall received its best report in 12 years 
from the California Youth Authority, and has markedly reduced both 
escapes and assaults inside. 

The Log Cabin Ranch program now has its first-ever parents support 
group, and has added job training and other programs that will help 

The Adult Probation Department has created a new intensive program 
for women who are pregnant or with small children to create a new life 
free of crime. 


The city has secured $150 million from federal and state sources for 
recovery repairs, including the Embarcadero and Central Freeways, school 
structures, airport and port facilities, the Marina Soil stabilization studies, 
and City Hall. 

Repairs have been made to 145 of the 190 city buildings that were 
damaged. The seismic upgrade work has been completed at the Academy 
of Sciences, the Richmond and Ingleside police stations, and the Park and 
Presidio Branch libraries. A wall to control soil movement east of Eight 
Avenue is now under construction. The Marina soil study is being reviewed 
to determine the impact 
on future construction and codes. 

The city will complete contracts for 35 Bayside suction locations for 
our portable pumps, we have installed new telephone systems that will 
hold up in an emergency for 911 and other emergency response offices, 
and we will be dedicating the new Emergency Command Center on 
October 17th. 

The neighborhood response teams have trained 136 San Franciscans, 
and 2,000 more have received basic earthquake safety training. 


The city continues to take steps to make our environment livable, 
enjoyable and safe. 

In the past year, the Recreation and Parks Department completed 
several important property acquisitions. 

A new shoreline park at India Basin on the southeast waterfront will 
give us a new Bay opening. Through Open Space Funds, a Rock 
Outcropping in Golden Gate Heights has been acquired which offers 
magnificent views which will now be preserved. We are examining the 
possibility of acquiring some of the ocean front property of Parcel 4 for 
recreation use. 

The toxic cleanup problems at the Ellis Street site in the Tenderloin 
have been resolved, allowing us to purchase the property. Work is now 
underway for construction of a new recreation center for children and 

We are also starting on purchase of property for a new park South of 

The Mission Bay development will include 60 acres of open space, and 
the Hunters Point shipyard task force is also reviewing what open space 
and recreational areas can be provided at that 550-acre site. 

Yerba Buena Gardens will also begin this year, with final approval of 
a design that will include recreation as well as open space. 

San Francisco is still overcoming the effects of unregulated toxic 
dumping from earlier years; the most serious toxic sites are at Hunters 
Point and the Presidio. The City is insisting that the military meet its 
commitment to clean all toxics before transferring land to the city. 

The Mission Bay plan includes inspection to insure that all 

toxics are cleaned to state-of-the-art standards. 

This year, the Fire Department purchased a state-of-the-art 
hazardous materials truck to aid in cleaning all spills in the city; 
firefighters have heen specially trained in the handling of toxics for their 
own and public safety. 

The city established a site for household toxic waste disposal, which 
now ranks as the most frequently used facility in the state. We also 
initiated a first-of-a-kind grant program to help small businesses switch 
to waste reduction technologies. 

The city's Department of Agriculture, Weights and Measures 
conducted in excess of 250 inspections in pesticide use enforcement. 

The District Attorney has established a new Environmental Protection 
Unit to handle the investigation and prosecution of environmental 
violations, which involve both civil and criminal prosecutions. 

The Health Department has created a first-of-a-kind program in 
California to handle the disposal of hypodermic needles used by diabetics. 
The program serves people who use and dispose of an estimated 10,000 to 
15,000 syringes per day. 

A city recycling program for residents has surpassed the state's 
mandate five years early, and won top honors in the nation for best 
recycling. Meanwhile, the City Purchaser is reviewing new procedures to 
emphasize the purchase of recycled materials for the use of city 

In the private sector, a Green Ribbon Task Force is encouraging 
environmentally-sound business design and practices, and already has held 
its first award ceremony. 

The One Neat City coalition and other civic groups are taking the 
initiative in improving the appearance of streets and 

sidewalks as we fight the battle against increased litter. 

The drought led to both water rationing and, with the leadership of 
Supervisor Achtenberg and cooperative efforts by Supervisor Migden, the 
introduction of new water conservation and reclamation programs in the 
city, designed to end water waste and more fully use reclaimed water. 


San Francisco continues to advocate for a national health insurance 
program that meets the health needs of all citizens, not just those with an 
ability to pay. 

San Francisco's own- health care institutions were extensively 
evaluated this past year, and won high praise. 

This April, the American College of Surgeons Committee on Trauma 
recommended that San Francisco General Hospital be verified as a Level I 
Trauma Center for both adult and pediatric trauma. The Emergency 
Medical Services Agency concurred and formally made the designation. 

Laguna Honda Hospital won verbal approval from the State 
Department of Health Services at its annual inspection, with written 
approval forthcoming. 

The Department of Public Health has taken note of the outbreak of 
Legionnaires disease in Richmond, and representatives have met with the 
Department of Public Works and the Real Estate Department to review 
procedures for ensuring health and safe indoor air quality in all City owned 
or leased buildings. 

Federal and state cutbacks have been particularly severe in health 
services. The City has sought to meet those challenges directly, and in 
the past four years we have succeeded in more than doubling grants from 
$19 million to nearly $46 million. 

Reorganization of health services have allowed us to 

maintain services. Community emergency psychiatric services, such as 
those offered hy Mt. Zion, continue with no diversions. Board and care 
homes, which receive state funds, are being helped by the City through 
loans for rehabilitation by the Mayor's Office of Housing, mental health 
reallocations for persons discharged from a state hospital facility, and 
reviewing inappropriate building and housing code requirements that add 

Women face a major barrier to health care because of the lack of 
sufficient access to screening for breast and cervical cancer. The Health 
Department is working through the Women's Cancer Network to reach low 
income, uninsured and minority women, including using community 
outreach workers. A mammogram van goes to neighborhoods as part of 
the outreach program, and this month the van will again be out to promote 
screening. The Health Department also has increased pap smear tests. 

This year the Health Commission also became the first official part 
of San Francisco government to endorse testing and availability of RU486, 
the so-called abortion pill last May. Supervisor Alioto's resolution 
supported that effort by putting the City on record in favor of 
Assemblymember Jackie Spier's resolution in the State Legislature. 

HIV continues its terrible toll in our city, and there is alarming 
evidence that new infection rates are again rising. I proposed a 12-point 
program to respond to the HIV Epidemic at the U.S. Conference of Mayors 
this year, which was unanimously adopted. 

One of its points is to add to our prevention program by providing 
condoms in schools. Tomorrow night the School Board will consider a plan 
to implement condom distribution in San Francisco schools. I have asked 
my consultant on the HIV 

Epidemic, Dr. Donald Francis, to testify in favor of the program and the 
Health Department is prepared to assist, including with some funding. 

This week the Center for Positive Care, proposed to this Board hy 
Supervisor Britt, began serving people who need information about early 
treatment of HIV disease. The Center is the first of its kind in the nation, 
and demonstrates our ability to work with community groups to move a 
concept into a specific program. As a result of community input, the 
Center for Positive Care will specifically seek to serve those most 
excluded from current services, particularly minorities, women, and the 
homeless, as well as those who already are aware and concerned. Medical 
services will be provided through district health centers, San Francisco 
General, and state-funded contracts. This approach was the consensus 
from discussions with health care workers involved in HIV services, 
community groups, and Supervisor Britt 's office. 

The facility for the new AIDS Research Center is now undergoing 
final inspections. In addition to making San 

Francisco the first place in the nation with a research center dedicated to 
HIV and immune disorders, the additional scientific staff will also mean an 
increase in clinical trials testing new treatments here, which San 
Franciscans will welcome. 

San Francisco will continue to pursue adding a stronger outreach to 
combat HIV infections among IV Drug Abusers. The programs viewed as 
most successful are those which include a treatment program for those 
who decide to abandon drug abuse, as well as those with broad community 
support and which are legally sanctioned. Two years ago, we proposed a 
legal pilot program for San Francisco to state authorities but did not 
succeed. We will continue to push for a program that includes each of 
these elements. 


As a result of enormous federal cutbacks in housing programs totaling 
75% of former levels, every city in the country is struggling with the 
problem of homelessness. No concern pulls at our heart and our civic 
pride as much as the homeless on the streets of our city. 

The changes and improvements aren't coming fast enough for the 
people who need them most of all, as well as for San Franciscans who care 
so much. 

I believe our comprehensive plan, Beyond Shelter, is moving us in the 
right direction. The Congress of the United States is helping our city 
because they believe, as Rep. Bob Traxler, chair of the House 
Appropriations subcommittee, from Michigan, says "we believe it is a 
project with national significance." 

In the next few weeks, we will complete the final rehabiliation of one 
of our two downtown Homeless Multi-Service Centers. The other facility 
will be ready by this January. 

Both are just a small part of a citywide plan to move people from a 
state of helplessness on our streets to self-sufficiency. 

The hardest piece of our program to complete has been the 
component for Street Alcoholics and Substance Abusers who collapse on 
our streets. At least one-half of the homeless street deaths are among 
these people. 

In the near future, we will open a facility to house people who 
collapse on the streets from alcohol or drug abuse. I am personally 
grateful to Sen. Barbara Mikulski of Maryland who was the first to 
recognize and incorporate into the federal budget the $4 million which 
now has been approved by a Joint Conference Committee, and which is 
being moved through the House thanks to the leadership of Rep. Nancy 

Even that is not the total solution. 

This year we have opened new permanent housing with services for 
homeless people with different types of needs, from HIV to runaway youth. 

One example of what we can do is the Senator Hotel, which was 
inaugurated this past month as hoth a residence and a job development 
program with case management services. 

In all, we have opened 1,560 units of permanent housing for the 
homeless in the past three years, and 198 units of transitional housing — 
and in both cases, we have created facilities for special needs such as 
psychiatric disabilities, abused women, homeless single women, 
AIDS/ARC, and homeless families. 

Herein lies the ultimate response to the needs of the homeless — the 
provision of permanent housing to those who are homeless and who are 
recovering their lives. 


San Francisco's children face urgent needs. State and federal 
cutbacks in schools, children's health program, and other services have 
been devastating. 

Proposition J, the Children's Budget Amendment, will dedicate a 
portion of our city's revenue to new children's programs. It marks an 
important commitment, as well as a source of increased funding for 
children and youth. 

A number of programs are operating which demonstrate some of what 
we are able to do. 

We continue to aid the school district by providing MUNI 
transportation for schools, utilities, and health services. We are seeing an 
alarming increase in teen pregnancies at our school family services clinic, 
and there is cause for deep concern about HIV education. 

Supervisor Hallinan's new tax on sports entertainments is enabling the 
city's schools to save the after-school sports program in the middle 
schools and high schools. 

This year the Recreation and Parks Department also celebrated the 
re-opening of Kezar Stadium, following major renovations, as a home for 
after-school sports competitions. 

We have created a lead testing program for children in public housing, 
which also includes comprehensive medical check-ups ranging from sickle 
cell anemia tests to vision and hearing tests. 

We now have 17 sites for Latch Key after-school programs through 
the Recreation and Parks Department — and all of them are operating at 
full capacity. 

The Public Library has initiated a new After School Kids programs. 
Citywide we have seen a seven percent increase in children's book use. 
More than 7,000 children participated in the Library's Summer Reading 

Our city's museums also have reached out to children, with Steinhart 
Aquarium visiting 223 classrooms to bring living creatures and artifacts to 
6,900 children. 

There are modest gains ahead for childcare, but we are far from 
providing the childcare in our city that families want and need. 

In all, about $2 million in new childcare funding will be available 
through the Downtown Child Care Ordinance and San Francisco's share of 
new federal child care funds. Some new child care facilities will be 
available as Yerba Buena Center is built, and as we complete 
arrangements with San Mateo County for the airport worker child care 

In January we opened a child care room at the Hall of Justice for 
jurors and others who have husiness there. 


The City's arts community have a number of important developments 
this year, including the upcoming groundbreaking for the new Yerba Buena 
Arts Center, a new director for the city's Arts Commission, and a major 
renovation at the Fine Arts Museum. 

The city has signed a lease for the African American Cultural Center, 
and we are committed to finding a new home for the Mexican Museum of 
Apt that respects its significance to our arts community. 

The city has included new live/work space for artists in the approvals 
for Mission Bay, and also will incorporate live/work space in the 
Redevelopment upgrading of Sixth Street. 

The Asian Art Museum has added a significant collection of Japanese 
art which is considered to be the most important acquisition since the 
Avery Brundage Collection. 

The Fine Arts Museum will shortly exhibit works by Henry Ossawa 
Tanner, which will be one of the first exhibits by an African American 
artist there in recent memory. There also will be a major exhibition of 
Theatre in Revolution, a historic collection-sharing effort with Moscow's 
Bakhrushin Museum. After being exhibited in San Francisco, it will go to 
New York. 


One of the reasons why San Francisco has become a majority minority 
city is due to the growing number of immigrant newcomers in our city. 

The Bay Area has the third largest population of Central Americans in 
the United States, and the largest concentration of Chinese residents 
outside China. 

The Mayor's Office of Housing and Community Development funds 
eleven community-based organizations to deal specifically with the social 
service, immigration and legal needs, joh training and employment, and 
other services needed by these newcomers. 

From time to time, it has been said that San Francisco City Hall is 
too quick to involve itself in what some call 
international issues. 

In San Francisco, those international issues frequently become local 

We have five red jacketed Latin American immigrants who circulate 
through San Francisco's General Hospital lobby to advocate and help Latin 
American refugees. We work with Ethiopian and Erithrean refugees who 
need skilled counseling to overcome the effects of imprisonment and 
torture before they can have a healthy family life again. We offer support 
groups for Cambodian refugees whose families undergo post -traumatic 
stress similar to that experienced by combat veterans. 

Between 1988 and 1991, refugees coming to San Francisco increased 
52% while federal preventive health funds remained the same. We deal 
with refugees who speak in as many as 40 different languages and 
dialects. The San Francisco school district dedicates one high school — 
Newcomer High — to students who have entered the country and need 
help understanding our culture as well as learning everything a child must 

I am asking the Director of Community Development to establish a 
Coordinating Council of agencies serving immigrants and refugees to give 
me recommendations on how to best meet the needs of these underserved 
populations and coordinate with each other to provide a more effective 
and efficient network of 


For as long as there has been a San Francisco, this has been a city 
that takes pride in welcoming new comers — and in being a home for 
conscience. It was a proud moment for our city when Board President 
Doris Ward took her position, and became the first African American to 
lead this Board. It does not matter whether people have fled racism, or 
homophobia, or political terrorism in a foreign nation. 

Standing for what is right can never be wrong. 

What we have failed to take into account in our foreign policy — the 
power of conscience, the value of individual dignity — is exactly what we 
are failing to take into account in our domestic policy. 

That is not happening in San Francisco. ..and I think other people 
recognize that. 

This year, people fought back against repression. The Baltic 
Republics finally became independent, and the Russian people refused to 
accept a dictatorship over democracy. 

The world listened for the sounds that would let us know if freedom 
had won. It came early one morning, when Moscow Radio returned to the 
air as an independent voice. 

And as they signaled to the Russian people that dignity and 
conscience had won out, they did so by playing a song. 

The song they played was "San Francisco." 

We know the words. 

They know the spirit. 

"Open your Golden Gate, make no stranger wait outside your door...". 

That's who we are. ..born here or immigrated here... 
and that is never going to change. 

Thank you. 

The State of the City 

Mayor Frank M. Jordan 


October 19, 1992 


OCT 2 3 1992 


State of the City 
October 19, 1992 

President Shelley, Members of this Honorable Board, and fellow citizens of San 
Francisco. The City Charter requires that I report to you on the State of the City. 

I do so with mixed emotion — trepidation at the desperate state of our national 
economy — and optimism that, as San Franciscans, we can over come adversity. 

Never since the Great Depression of the 1930's has the City faced a more grim 
and troubled fiscal crisis. 

But, at the same time, we face the exciting adventure that, by working together, 
we can maintain a high level of public service — police on the streets, clinics and 
libraries open, parks in bloom and public transit within easy reach of every San 

To be sure, we will have to trim and cutback on some of the more costly levels of 

Tough decisions are inevitable — and, in cooperation and consultation with 
your honorable Board — I am prepared to make them. 

Undiminished however, is the commitment to the people of San Francisco to 
provide the municipal services that distinguish this City as one of the ultimate 
places in the world in which to live and in which to do business. 

Make no mistake that I want police on our streets, our parks safe and attractive, 
our libraries open and our health care facilities available to all in need of care. 

Obviously, the challenge is great. A deep and national recession cripples 
enterprise. A federal government has turned a callous back on working men and 
women. Health insurance has been denied and curtailed. Jobs have been lost, and 
home ownership has soared beyond the reach of most Americans. 

The federal administration of the past 12 years has haplessly allowed the nation 
to sink into a national debt totaling $4 trillion — undercutting state and local 
government efforts to provide services on which people truly depend. 

An ever-increasing burden falls on the backs of cities — and San Francisco has 
demonstrated over time the remarkable strength of its spine. 

State of the City 

Frank M.Jordan 

October, 19, 1992 

Page 2 

Everyone who believes in San Francisco recalls the rebirth after the April 6, 1906 
earthquake and, again, from the devastation of only three years ago in the quake of 

Now, together, Board of Supervisors, Mayor and the people of San Francisco, we 
face a challenge as grim and threatening as any in our history. But together, we 
shall prevail, as we have in the past, and rise to overcome adversity. 

Involved, and I must emphasize this, will be pain and sacrifice — for the 
solution to our budget crisis lies not in pots of gold at the end of a rainbow, but in 
deep and wrenching changes in the ways in which public services are funded. 

Historically, San Francisco has ortunately been able to compensate for much of 
its budgetary shortfall by dipping into various reserves and surpluses. 

That, from this year on, is impossible and we — together as Board and Mayor — 
must confront the imperative of reform in City government. We must modernize 
our City Charter. No longer can it be a melange of special interest. It must be 
radically altered to condense the size of government by consolidating functions. 

Specifically, we must eliminate the bureaucracy of the Public Utilities 
Commission presiding over the bureaucracies of Muni, Hetch Hetchy and the Water 
Department. Housing and Redevelopment may be folded into one department. 
And, the formulas for setting City salaries may have to be changed from providing 
top dollar to assuring what is fair and comparable with local government. 

All this will require the approval of the voters, and to succeed — as Mayor and as 
a Board — we must work together to build a consensus to assure united support. 

As never before, we need to become an alliance of progress for the City. 

Already we have demonstrated the importance of collaboration. 

When I entered office a mere nine months ago, I was confronted with a budget 
shortfall of $110 million. It swelled shortly to $170 million — and, after months of 
deadlock, the state then added a $60 million shortfall. That action resulted in $33 
million in reduced local revenues. Yet, in cooperation with Supervisors Jim 
Gonzalez, Chairman of the Finance Committee, and Board President Kevin Shelley, 
we were able to preserve vital services within a budget that was balanced and that 
was humane. Supervisor Annemarie Conroy assisted by discovering $32 million 
available from the City Retirement Fund. 

State of the City 

Frank M.Jordan 

October, 19, 1992 

Page 3 

Nonetheless, the challenges remain great. As did the federal government, the 
present state administration has abandoned our cities. Clearly, it has become is the 
objective of the state government to dismantle health and welfare services to the ill 
and the needy. Similarly, the lamp of learning has been dimmed for our young 
people in reduction of funding for public education. 

The only counter attack lies in the force of local consensus. That's why I am 
committed to enlisting a forceful and driving coalition for change. 

For one, I am working with Supervisor Carole Migden to establish a budget task 
force to resolve the City's fiscal crisis. That task force will recommend 
comprehensive measures to determine government service levels implementing 
efficiencies and other cost savings, and proposed revenue enhancements to resolve 
our fiscal crisis. Later this week, Supervisor Migden and I will announce 
appointments to the task force. 

Additionally, I shortly will announce the formation of small strike forces made 
up of members from both private and public sectors to examine and then 
implement some 50 recommendations for long-term reform from the Mayor's 
Fiscal Advisory Committee. 

In the short range, we must clamp down on such excesses as fancy new cars for 
City executives. I agree with Supervisor Terence Hallinan that City government 
needs to be trim and lean so that it feels in its ribs the real needs of the people of San 

Of course no need is more real than that of the unemployed who cannot 
adequately provide for themselves or their families. 

The recently enacted state budget reduces grants in Aid to Families with 
Dependent Children and allows counties to reduce General Assistance. Thus far, 
San Francisco has not reduced GA levels. Reductions in AFDC could have a 
devastating effect on families and could force many of them onto the streets because 
they no longer can afford their rents. 

I am committed to providing a safety net for our most indigent citizens. At the 
same time, it is necessary to explore all options to make our welfare system fair and 

Systematically, the state is folding the safety net for countless Californians, and 
the most heartless attempt of all is Proposition 165 on the November ballot. This 
measure is little more than a hand grenade lobbed on the less fortunate. It would 

State of the City 

Frank M.Jordan 

October, 19, 1992 

Page 4 

rupture the state-local government partnership and place the full burden of welfare 
on individual counties. 

The result, inevitably, will be more persons forced into the vacuum of 

Homelessness is not a local but a national disgrace, and its solution lies in 
developing affordable housing, meaningful employment and treatment for mental 
illness and drug and alcohol abuse. 

San Francisco has taken bold action to overcome the State's indifference by 
providing a strong helping hand to those in need. 

• The doors of the Fell Street Center opened on the 15th of September. This 
program serves public inebriates and substance abusers. It provides the 
opportunity for people to come off the street, to dry out and to enroll in 
substance abuse treatment programs. Up to 50 people can be accommodated 
at any given time. 

• In collaboration with Supervisor Gonzalez, I am establishing a County 
Veteran Services Office (CSVO) to assist homeless veterans in obtaining 
federal benefits. The CVSO will allow eligible homeless veterans to receive 
monthly cash benefits, including health care, reducing the burden on local 
General Assistance payments. 

• In collaboration with Supervisor Migden, I am expanding the representative 
payee program which will identify 400 Supplemental Security Insurance 
recipients in our emergency shelters, provide them with housing and assist 
them with managing their money. This will ensure that their SSI funds are 
spent first on shelter, food and other necessities. This voluntary program also 
will help them stabilize their housing situation and increase the capacity of 
our shelters. 

• In collaboration with City government, four nonprofit agencies were awarded 
$10.3 million in federal grants to assist homeless and low-income people. 
Among other projects, $3.9 million will be used for the acquisition and 
rehabilitation of housing for the homeless in the Tenderloin neighborhood. 

Additionally, the Mayor's Homeless Van Program has been successful in 
assisting homeless people with gaining access to shelter and social services, helping 
them move from the hopelessness of the streets to the hopefulness of rehabilitation 
and job training. 

State of the City 

Frank M.Jordan 

October, 19, 1992 

Page 5 

Of course, the goals we set — the expectations we seek — will be conditioned by 
an economy in deep recession. But, as San Franciscans, we cannot allow ourselves 
to be trapped in the trough of a stagnant economy. We must build for the future. 
And there is no more promising venue than the Pacific Rim. 

As the gateway to the Pacific basin, we must work regionally to increase and 
strengthen our ties to the Far East. 

As a city of incomparable beauty and diversity, we must continue aggressively to 
promote tourism from within our nation and worldwide. 

As a city that prospers as employment expands, we must build coalitions — a 
coalition between small business and big business and a coalition between all 
business, labor and the neighborhoods — to expand opportunities for growth. Only 
through consensus will come the power to protect our uniqueness, enlarge our job- 
base and put more people to work. 

We must end the sullen differences that divide us as a city and come together in 
common effort to maintain our greatness. The list of rich endeavors is long and 
encouraging. It includes: 

• Moving forward with the $2 billion expansion of San Francisco International 
Airport so that it can accommodate the increase of trans-Pacific passengers far 
into the 21st century. 

• Continuing to improve our public facilities. We have made some impressive 
strides in 1992 to meet our infrastructure needs. We are moving forward 
with more than $3 billion in public works projects — a public construction 
agenda unmatched by any other major city in the nation. This infusion of 
public funds demonstrates our commitment to a better San Francisco. 

• Construction of the magnificent new San Francisco Main Library is scheduled 
to begin next January as a tribute to private and public funding. When that 
building is open, it will contain the world's first study center devoted to gay 
and lesbian issues, as well as the world's largest collection of lesbian and gay 
printed material. In addition, there will be two ambitious branch renovation 
and expansion projects — Chinatown and Mission branches — which will 
utilize a combination of local, state and federal funds, scheduled to begin in 

• Moving forward with plans for the relocation of the Asian Art Museum from 
Golden Gate Park to the old Main Library site in the Civic Center. 

State of the City 

Frank M.Jordan 

October, 19, 1992 

Page 6 

Another important endeavor is keeping the San Francisco Giants where they 
belong — right here in San Francisco. 

For 35 years, the Giants have been part of the fabric of our City. I applaud each 
and every one of you for your consistent support of the community's united effort 
to retain the Giants. Your vote for indemnification was an important element in 
keeping the team in San Francisco, and I thank you. Within the next few weeks, I 
will again be asking you to take further steps to assure the Giants keep San Francisco 
on their logo by approving lease amendments, providing rent relief and parking lot 
revenues and other concessions designed to reduce the Giants operating losses until 
a new ballpark can be constructed. Your continued support is absolutely essential to 
our ultimate success. 

I hope that by next year's State of the City message, we will be well on the way to 
developing a ballpark which will ensure that the Giants are in San Francisco 
forever. The game has not yet been won, but through the efforts of City 
government, labor, business, concerned citizens and civic-minded investors, we are 
still at bat and we can still hit the winning home run. 

I am particularly pleased with the leadership from Supervisors Bill Maher, 
Roberta Achtenberg, Angela Alioto and Annemarie Conroy to keep the Giants in 
San Francisco. 

Also significant are efforts to keep one of the world's premier medical centers in 
San Francisco. I have assured the University of California that its needs for research 
and clinical space can be met in San Francisco — thus maintaining 14,000 jobs at the 
San Francisco campus and maintaining our links to new jobs in the biotech 

And I am proud to say that major strides have been made to improve the 
business climate in San Francisco. Through the collective efforts of the Department 
of Public Works, the City Planning Department and the Fire Department, a 
significant improvement in the building permit process has been implemented. 
These departments merged their staffs into a single location called the Construction 
Services Center, reducing confusion in the permit process. Since its inception, the 
Construction Services Center has been able to process 60 percent of the permit 
requests over the counter as compared to none prior to the June 1st opening of the 
center. Over the past three months, 899 applications were submitted to the 
Construction Services Center, and 551 applications were approved right on the spot. 
Additionally, the center screens for incomplete applications and was able to screen 
out 275 incomplete applications, making the San Francisco's permiting process 
more efficient. 

State of the City 

Frank M.Jordan 

October, 19, 1992 

Page 7 

Furthermore, we have been successful in maintaining San Francisco as a 
desirable location for corporate headquarters, including those of McKesson 
Corporation, Potlach and Simpson Paper. 

Our efforts were recognized just last week when Fortune magazine ranked San 
Francisco as the third best city in the nation to do business. It was the first time that 
San Francisco has made the top ten list since the Bay Area region was ranked 
number six by Fortune in 1989. Fortune concluded that the nation's best cities for 
business were those which offered a quality workforce, efficient city services and 
other essential factors that enable local companies to compete effectively in the 
global market. 

In a major step toward enhancing our local economy, I shall shortly announce 
an agreement for a major new Federal Building that will keep 2,500 jobs in San 
Francisco. Additionally, I am pleased to note that my commitment to increasing 
film production in San Francisco is paying off. While production nationally has 
dropped due to the effects of the recession, permits for commercial and corporate 
production in San Francisco remain consistent with last year's figures. 

There are other areas in which solid progress is being made for the betterment of 
this great City. 

• To enable San Francisco to do its part in improving the Bay Area's air quality, 
Supervisor Harry Britt and I are forming a Mayor's Alternative Fuels Task 
Force charged with developing and implementing an alternative fuels 
program for the City's fleet, capturing available state and federal funds for 
scuh programs, and urging private sector fleet operators to develop 
alternative fuels programs. Additionally, I have requested Ford Motor 
Company to retrofit my City vehicle to an alternative fuel vehicle — which 
will make me the first mayor of any major U.S. city to officially use such a 

• To build affordable housing, the Mayor's Office of Housing, working with the 
Redevelopment Agency, since last January, has funded 807 units with local 
funds — totaling more than $26.2 million, or $20,100 per unit. The total 
value of these units is expected to be $73.8 million, or $91,400 per unit. For 
every dollar of discretionary funds, we are collecting approximately $3.00 of 
outside funds. 

In 1992, my Office of Housing, the Redevelopment Agency and local non- 
profit agencies were able successfully to compete for state housing funds. 
Once again, by working together, San Francisco obtained more than 40 percent 
of the total funds allocated by the State. 

State of the City 

Frank M.Jordan 

October, 19, 1992 

Page 8 

Additionally, two special subsidized housing opportunities are underway. 
For one, we have a federal entitlement under the Housing Opportunities for 
Persons with AIDS Act. We plan to spend more than $2.8 million for 
housing and more than $300,000 on lease payments. Secondly, my staff is 
working to find a location for a Detox Center. Funds for the capital costs of 
this center will come from the federal government. 

The most important housing issue facing the voters on this November's 
ballot is Proposition A, the Seismic Bond measure. I and the entire Board of 
Supervisors strongly support Proposition A because, if approved, over the 
next 13 years we will be able to make substantial progress in improving the 
earthquake safety of some 20,000 affordable housing units. There is broad- 
based support for this vital humanitarian safety issue, which is on the ballot 
thanks to the efforts of Supervisor Tom Hsieh. 

To keep our streets cleaner, we have intensified our efforts by using the 
workfare program. Five crews have been expanded to 15, we are cleaning 
seven days rather than six days a week, and we have increased the number of 
sweepers from 50 to 150 per day. We now have a seven-day-a-week 
mechanical street cleaning program funded through fines generated from 
parking violations. We have put 300 new litter receptacles on the streets and 
expect an additional 3,000 soon will be. 

To make our City safer, our Police Department this year instituted aggressive 
enforcement to reduce personal and property-related traffic accidents. 
Moving citations are up more than 25 percent from last year. 

We created a Crime Suppression Unit of plain-clothed officers to work in 
high-crime areas, resulting in a reduction in violent crimes. 

The Police Department's overworked 911 system will be improved. By the 
end of November, seven new dispatchers will be on the job, with an 
additional seven to be added after January 1. 

San Francisco voters will have their say on November 3rd as partners in 
improving our public safety. Of critical importance to our City is Proposition 
B to replace the substandard, inhumane and overcrowded county jail in San 
Bruno. Already the City is being hammered by heavy fines in Federal Court 
for overcrowding. Clearly the alternative is not to throw open the doors or 
our jails and dispatch felons onto our streets. We must have a modern, 
secure jail. 

State of the City 

Frank M.Jordan 

October, 19, 1992 

Page 9 

Additionally, I urge voters to approve Proposition C to make our fire stations 
seismically safe and Proposition J to make aggressive soliciting a crime. The 
penalty for aggressive soliciting can and should be spending community 
service time on worthwhile city projects, thus setting a positive tone for our 

We have made enormous progress in the area of disaster preparedness. I 
brought a seasoned professional into my administration to correct the 
deplorable state of affairs in the Office of Emergency Services. In less than six 
months, the new Emergency Command Center at 1003 Turk has been 
equipped and properly staffed. Additionally, the OES staff has conducted a 
week-long exercise in which all of the City's agencies and their respective 
department heads participated. 

This is a dynamic effort that will bring a business-like and coordinated 
approach to our ability to respond to all major emergencies. I want San 
Francisco to be second to none in this important arena, and I am happy to 
report that we are off to a flying start. 

To assist in the fight against AIDS, we have worked tirelessly to implement a 
needle exchange program which was sponsored by Supervisor Angela Alioto. 
While Governor Wilson has chosen to ignore the sound advice of medical 
experts by vetoing needle exchange legislation, we in San Francisco know that 
this is an essential tool in curbing the spread of HIV infection among 
intravenous drug users. I am committed to working with the Board, the 
Department of Public Health and other interested parties to move forward 
with an needle exchange program for San Francisco. 

Additionally, thanks to the work of Congresswoman Nancy Pelosi, San 
Francisco obtained an additional $4.7 million over current federal funding 
levels for the City's AIDS programs. 

To serve our working families, we have, under the Mayor's Office of 
Community Development continued our commitment to quality child care 
by expanding licensed family day care homes. 

In 1992, we completed the renovation of three family day care homes, 
increasing the licensed capacity from six to 12 children in each. One of the 
completed homes is accessible to the disabled. 

We also provided funding for a quality training program for 62 family day 
care providers and facilitated 21 new family day care start-ups. We have also 
been successful in securing more than $200,000 in state subsidies for 50 low- 

State of the City 

Frank M.Jordan 

October, 19, 1992 

Page 10 

income families in the family day care program. In 1993, we will renovate 
four more large family day care homes. 

Additionally, working with Supervisor Roberta Achtenberg, we are 
developing a process for utilizing the funds in the City's Affordable Child 
Care Fund. For the first time in the history of San Francisco, there are funds 
available to assist graduates from the City's employment training programs 
with childcare costs. The fund, which is generated by a one dollar per square 
foot fee on all newly constructed office space, currently contains $1.2 million. 
This year, we have committed $250,000 to assist employment training 
graduates and hope to increase our share by an additional $500,000 in 
subsequent years. 

San Francisco has moved ahead in the area of compliance with the 
Americans with Disabilities Act of 1990. All City departments have 
completed the federally mandated self-evaluation of access. To ensure the 
maximum input by people with disabilities, in the next few weeks, I will be 
appointing a Mayor's Council on Disability to give all people with disabilities 
the opportunity for full participation in the mainstream of live in San 

To put San Franciscans to work, the Mayor's Office of Children, Youth and 
Their Families, in collaboration with my Office of Community Development, 
established Employment Opportunities 1000. This new program will solicit at 
least 1,000 new jobs from San Francisco employers. $100,000 has been 
allocated to pilot this effort. These jobs will benefit low-income San 
Franciscans who have the greatest difficulties in securing employment. Job 
pledges will be sought from a wide range of private sector employers. 
Employees will be recruited through existing community-based employment 
training and placement agencies. 

One of the bright notes in 1992 has been provided by Supervisor Willie 
Kennedy, author of the Pilot Disadvantaged and High Risk Youth 
Employment Program and the Minority, Women and Local Business 
Enterprise legislation. 

In 1992, the Mayor's Office of Community Development continued to 
develop the Self-Employment and Enterprise Development program. The 
mission of the SEED program is to employ, as well as empower, low and 
moderate-income San Franciscans through business ownership. 

The program is administered through a consortium of five neighborhood- 
based nonprofit agencies working in partnership with my Office of 

State of the City 

Frank M.Jordan 

October, 19, 1992 

Page 11 

Community Development and private funders, including PG&E and the Levi 
Strauss and Bank of America foundations. 

Through September of this year, 54 businesses have been started or expanded 
through SEED. These new businesses have not only created self-employment 
for the new business owner, but an additional 31 jobs for San Franciscans. 

Some of the new business owners include Terrance and Patricia Silas, an 
African-American couple who reside in the Bayview Hunters Point 
neighborhood, and are the owners of TOSP Creations, a leather goods 

There is also Mr. My Kha Duong, a Vietnamese immigrant who, along with 
his family, owns and operates Sunrise Health and Natural Foods, a 
wholesaler of ready-made sandwiches and salads in the Mission District. 

And there is Ms. Constance Gutierrez, an African-American single mother of 
two, living on disability, whose dream was to own a wholesale bakery. Again, 
with the help of the SEED program, Ms. Gutierrez received the assistance 
which enabled her to secure a commercial kitchen, structuring her business 
operation to make it manageable and realize her dream of business 
ownership. Her Sunnydale business is Venetia's Gingerbread . 

These are just a few of the examples of talented entrepreneurs who, with the 
assistance of the SEED program, now represent a new generation of small 
business owners contributing to San Francisco's economy. 

As can be seen, initiatives have been undertaken, new programs 
have been launched and real progress has been made in the few short months since 
I took the oath of office. 

When I came into office, I knew the job would be tough, but never did I 
anticipate that the challenges would be so relentless. 

Never did I imagine that the City's budget deficit would grow and grow and 
threaten to engulf vital programs. 

Never did I anticipate that the great state of California would use a butcher block 
to cut funds for health care, law enforcement, education and assistance to children 
and families. 

Never did I contemplate what no mayor has had to face since the dark days of the 
1930's — when a deep recession disabled cities from fully serving its citizenry. 

State of the City 

Frank M. Jordan 

October, 19, 1992 

Page 12 

But having been a police officer for 33 years, I know that the one thing you can 
expect is the unexpected. And I also know that adversity strengthens resolve and 
gives purpose and energy to our efforts. 

In these nine months — as rough and difficult as they have been — certain 
objectives have remained constant. 

Building our economy and creating jobs and decent housing — making our 
streets safer and keeping them clean — providing quality care to persons living with 
HIV and other serious illnesses all are constant commitments to the people of San 

Improving public transit, keeping our libraries open and our parks blooming 
also remain constants. 

So does our determination to keep the Giants in San Francisco. We're in the 
final inning of a hard-fought contest, and however it comes out, all San Franciscans 
can know this City fought the good fight. Local investors came forward, put forth a 
sound offer, and now we await the decision of the Major League owners. 

But these are not efforts the Mayor's Office alone can win. Progress will come 
only if all San Franciscans pitch in. 

That means their strong votes in favor on November 3rd of Proposition A for 
preserving affordable housing, Proposition B for a new jail and Proposition C for 
seismically safe fire houses. 

Next year, it will mean a similar outpouring of support on the ballot for City 
Charter reform that will bring City costs more in line with City means. 

We have recognized the need for charter reform, and we know that while we 
balanced this year's budget without drastic lay-offs and severe curtailments of 
services, we'll not be able to do so in the future without major changes to our 

That is why I will make charter reform my first priority as I move toward the 
second year of my administration. 

Of course this will require building strong consensus — all sectors of our City 
must be mobilized in a common endeavor. Business, labor, the neighborhoods all 
must be brought together, and I shall devote myself to achieving this goal. 

State of the City 

Frank M.Jordan 

October, 19, 1992 

Page 13 

This coalition building, of course, starts right here in City Hall — in a close, 
working relationship between my office and your honorable Board. If there were 
misunderstandings and mis-steps in our relations in these early months of my 
administration, I pledge myself to working with each and everyone of you — and 
with all San Franciscans — to improve communication and to ensure continuing 
progress for San Francisco. 

Let me close with a brief tribute to Supervisor Harry Britt, who is leaving your 
board after 12 years. Supervisor Britt set a high standard of integrity, dedication and 
leadership on this Board and throughout San Francisco. He tirelessly fought the 
battles against AIDS, against discrimination and for human rights. Supervisor Britt 
taught us all the nobility of passion for causes. I applaud him — I applaud all of you 
— and I applaud the people of this great City. I know of no other City that so 
magnificently rises from adversity, accepts new challenges and provides promise to 
all who live and work here. 




D0OMMr MTq DEpr 

c:t 2 


Mayor Frank Jordan 

October 4, 1993 

State of the City 

Mayor Frank Jordan 

October 4, 1993 


Through-out our history, political leaders have sounded themes to lead us through 
troubled, uncertain or challenging times. Franklin Roosevelt talked about the New 
Deal, followed by Harry Truman's Square Deal. John Kennedy challenged us to the 
New Frontier, while Lyndon Johnson forged the Great Society. 

The theme struck by President Clinton nationally is no less applicable to us locally: 
How do we in San Francisco Reinvent Government? It is no secret that these are 
challenging times. These are times where our burdens must be great, but our courage 
must be greater. These are our "Days for Decisions." In many ways, these are the best 
of times and the worst of times, but for us, it must be the spring of hope, rather than the 
winter of despair. 

The City has and is meeting the challenges confronting San Francisco in the 90's. 
There is no doubt that the most complicated problem facing society today is 
homelessness. Problems of soaring unemployment, a statewide closure of mental 
health facilities, and a drug epidemic of crack cocaine, which has stripped many of our 
young people of the desire, will, or capacity to work-in each of these areas, you have 
the foundation of our homeless problem. 

Never since the great depression, have so many been adrift. San Francisco has and 
is confronting the challenge of homelessness. Today is the feast day of St. Francis. All 
over the world, people are celebrating the life of our City's namesake. No matter what 
your impressions, I'm here today to assure you that San Francisco is still a City with a 
heart. Yet we also acknowledge our responsibility to all San Franciscans. I make no 
apologies for the efforts this administration is making on behalf of the homeless. 

We spend approximately $46 million every year to combat homelessness. We 
provide a wide array of services: housing, food, psychiatric and social services, 
medical services, and job training. In fact, I am pleased to announce that just last 
week, San Francisco received a Target Cities award of $11 million for the next five 
years. This will allow us to make systemic improvements in existing addiction 
treatment and recovery systems that will greatly benefit our homeless population. 

It is my intention to continue to do everything in my power to maintain or improve 
outcomes associated with providing exits for homelessness. However, these dollars 
compete with moneys needed for, Libraries, the Municipal Railway, Health, Police and 
Fire Services. We need to carefully review the most efficient and effective uses for 
funds set aside for homelessness, to best address the problem. 

I was elected Mayor by the residents of this City. My pledge was to make this City, 
safer, cleaner and more economically viable. 

State of the City 

Mayor Frank Jordan 

October 4, 1993 

Page 2 

I also made a pledge to address the homeless problems in a realistic way, separating 
"homeless" from "street people." Aggressive panhandling, trespassing, intimidation, 
sleeping on sidewalks and in public parks and plazas, public urination, and related 
activities make our neighborhoods more susceptible to serious crimes. 

At my direction, Police Chief Tony Ribera, in cooperation with the Health and Social 
Services departments has instituted matrix enforcement, and service efforts. Social 
service and mental health outreach workers will be referring homeless individuals to 
short-term shelters , as well as more stable housing. They will also offer needed 
guidance on social services or mental health care. And, the Police Department will 
continue to enforce laws regulating public behavior in public places. 

Now focused on the Union Square and Civic Center areas, the Matrix Program will 
eventually be extended city-wide so that San Franciscans in all neighborhoods can 
expect a clean and safe environment where minimum standards of behavior are met. 

I am pleased that through the first eight months of this year, San Francisco's crime 
rate for serious crimes has decreased by more than 13%. During the first month of 
matrix enforcement, there was a 20% drop in crime from the same month last year. The 
downward trend continued last month when crime statistics were 28.8% lower than a 
year ago this time— a direct result of matrix enforcement. 

I am encouraged by these statistics. I believe that while we have a ways to go 
towards making people feel safer in our neighborhoods we are headed in the right 
direction, and I intend to expand our efforts based on our initial success. 

At the same time that overall statistics for serious crime have dropped, it is clear that 
juvenile crime, and particularly violent juvenile crime, is on the rise and must be 
addressed. From January through August of this year; juvenile homicide increased by 
70%, robbery was up 112%, and larceny has risen 41%, over the same period in 1992. 

We all were shocked by the recent escape of 11 juveniles from the Youth Guidance 
Center. All of the juveniles were being held on charges of serious crimes, including six 
who were arrested for homicide. Five weeks later, two youths still remain at large. 

But the problems of security at Juvenile Hall and the recent escape, only serve to 
underscore the deeper and more difficult questions surrounding the overall delivery of 
juvenile justice in San Francisco. The issues surrounding juvenile crime are varied and 

There are many in our city who argue that only the least restrictive approach should 
be used to deal with juvenile offenders for every category of crime. I, however, believe 
we must utilize a balanced approach to effectively deal with the increase in juvenile 
crime which is plaguing our City and making people feel threatened in their own 

State of the City 

Mayor Frank Jordan 

October 4, 1993 

Page 3 

Incarceration, diversion programs, community placement, and counseling, all have 
their place in the system. Each must be evaluated in its relation to differing levels of 
crime. But let me emphasize, violent, repeat juvenile offenders must be dealt with in a 
way which protects the public safety— period. 

Last week, I convened a Task Force chaired by former Court of Appeals Justice 
Harry Low and former Superior Court Judge Jack Ertola to review the entire system of 
juvenile justice in San Francisco. I'm asking the Task Force to bring me 
recommendations in 90 days regarding the following areas: Juvenile detention facilities, 
including the Youth Guidance Center, Log Cabin Ranch, and Hidden Valley Ranch 
(which is currently not in use); the effectiveness of community placement programs; 
educational and counseling components for detained youth; sentencing, and probation 

I am particularly pleased that Superintendent of Schools Bill Rojas is participating 
on the Task Force. I am looking to the Task Force to build consensus and turn the tide 
of juvenile crime. It will head us in a direction that benefits all San Franciscans, 
particularly our youth. 

I began with the issues of homelessness and crime because I believe that these are at 
the forefront of the public's mind, when considering the state of our City. They reflect, 
perhaps more than any other issues, on government's ability to provide for the basic 
public good. 

But behind these issues, and all other issues facing San Franciscans, is the most 
basic question of how to fund the services we need with the moneys we have. We 
continue to suffer through this State's most serious economic problems in recent history. 
We are confronted by dwindling revenues while, at the same time, we as a City 
Government, must gain greater control over the increasing cost of our workforce. 

In my first 17 months as Mayor, I was required to do what no other San Francisco 
Mayor in history has done—propose to the Board of Supervisors measures to balance the 
budget four separate times to deal with a total projected short-fall of half a billion 
dollars. I am pleased that through all of it, we have been able to meet these challenges 
without significantly sacrificing essential services for the citizens of San Francisco. 

In this most recent budget, we squared-off against the most serious budget deficit 
the City has ever faced. I took the budget to the people, to the neighborhoods, to 
receive direct feedback on their concerns and priorities. 

In early June, my staff, assisted by Supervisor Annemarie Conroy and Civil Service 
Commissioner Lee Munson, showed the Retirement System Board that it could readjust 
its current cost to City Government, and thereby return $14 million to the General Fund. 

State of the City 

Mayor Frank Jordan 

October 4, 1993 

Page 4 

By coupling that action with the able assistance of Budget Committee Chair Carole 
Midgen and committee members Angela Alioto and Tom Hsieh, as well as an 
enlightened decision by Governor Wilson and the State Legislature to extend the 1/2 
cent sales tax, we were able to fend off the most serious service cutbacks the City has 
ever had to consider. But, as you know, we still have a long way to go. 

Today we are facing the potential for actual reductions in local revenue collection 
because of the condition of the real estate market, and its impact on tax assessments. 
Given the State's proven willingness to remove local property tax revenues to balance 
its own budget, it is impossible to know at this time just how serious a problem we face. 

What is clear is this: We must exercise the political will, to take the actions 
necessary, to gain control over the costs of the wages and benefits we provide our 
employees. We must maintain the resolve of my administration to reduce the size of 
our workforce and to gain better control over the moneys we pay for City contracts. 
And we must understand that we cannot continue to go back to the well, by raising 
taxes every time we have a problem. 

In 1990, San Francisco voters passed legislation that called for labor negotiations for 
the majority of the City's work force to be conducted through baseball style interest 
arbitration. Our first foray into this type of negotiation resulted in a union package that 
will, if not overturned in the courts, increase the wages and benefits in the work force of 
employees by 25% over the next three years, while reducing management's ability to 
manage. By failing to overturn this decision, we have mortgaged the City's budgetary 

It is my view that by allowing increases of this magnitude to occur during times of 
hardship, we stand to lose credibility with the public. The $140 million increased labor 
costs to be paid over three years surely will compromise our ability to provide the levels 
of service San Franciscans desire, and which I know this Board wants them to have. 

The budget I submitted to the Board of Supervisors contained a work-force 
reduction of 1,400 positions. This would be achieved through a combination of 
management reductions, some service cutbacks, and efficiency enhancements through 
contracting out services. Because of the reinstatement of the sales tax, the adjustments 
to the retirement contribution rate, and the Board's reluctance to contract out services, 
the total reduction in positions is closer to 600. 

Next week the Board of Supervisors will have the opportunity to actually enhance 
services provided to seniors by the Senior Escort Program, while reducing its cost by 
one-half or $800, 000, by contracting the program out to community based service 
providers. Please look carefully at the Senior Escort Package and make the right 

State of the City 

Mayor Frank Jordan 

October 4, 1993 

Page 5 

This year, as in past years, we turned to our business community to help us through 
our budget difficulties. Like you, I am sensitive to the need to maintain services and I 
looked to business to help find a partial way out of our staggering fiscal problem. 

I know you are all aware of a report recently issued by the Department of City 
Planning that indicates that during 1991-92, San Francisco lost 30, 000 jobs. We must 
take action now to reverse that trend. Jobs form the backbone of our local economy. 
We simply cannot, from this point forward, continue to look to business as a way out of 
our problems. 

The payroll /gross receipts tax contributes $170 million to our revenue base. But, it 
is a strong economic disincentive for firms that are headquartered here and for any who 
would consider expanding or locating here, small businesses included. 

I was pleased to support Supervisor Barbara Kaufman's legislation that provides for 
a job growth incentive, by allowing new or growing firms to avoid additional payroll 
taxes over a five year period. But, I also believe that the payroll tax itself must be 
reviewed in its entirety. 

We intend to see if there is some better way we can work with our business 
community to achieve a revenue stream for the City, while simultaneously encouraging 
businesses to move here, stay here, and grow here. I am therefore convening a group of 
economists and business leaders to study the business tax structure, to see how we can 
do better. I hope the results of their efforts can be included in next year's budget. 

Recently, President Clinton and Vice President Gore visited Sunnyvale to emphasize 
the success that that city has had in providing an efficient, performance 
oriented, and value driven government for its residents and businesses. 

Across America, cities are studying and implementing ways to "Reinvent their 
Governments", to get the most out of shrinking revenues while they face problems and 
challenges similar to ours. I have directed my staff to do likewise and bring forth 
proposals on how we can provide the best possible services in the most economic ways. 

My office will work closely with you as the legislative body to keep you informed of 
progress as we jointly approach these issues. We have taken the first steps toward a 
more efficient and better run government, through the submission of three charter 
reform measures which will be before the voters on next month's Ballot: 

• Proposition L, submitted by Supervisor Barbara Kaufman, will create a Human 
Resources Department and improve our ability to manage our personnel issues. 

• Proposition M, submitted by Supervisor Carole Migden, will establish a Public 
Transit Commission that will focus its efforts on the MUNI Railway, our 
transportation lifeline, that is badly in need of management support. 

State of the City 

Mayor Frank Jordan 

October 4, 1993 

Page 6 

• Proposition N, submitted by Supervisor Sue Bierman, wall authorize the Mayor, 
Chief Administrative Officer Rudy Nothenberg and the Board of Supervisors to 
work constructively with the community, to build the consensus needed to 
achieve a broad overhaul of the City's outdated charter. 

Some other key ballot measures for which I am asking public support are: 

• Proposition A, the cultural facilities bond measure which will provide for much 
needed remodeling and seismic upgrading of our cultural facilities; 

• Proposition B, which will provide sorely needed funds to repair our City streets; 

• Proposition C, which will ensure the City's ability to maintain the City's half cent 
sales tax should the state-wide initiative fail; 

• Proposition V, the General Assistance reform initiative which will improve 
controls and reduce the potential for fraud in our $53 million per-year 

General Assistance Program. The public deserves no less than our assurances that 
only eligible General Assistance recipients receive benefits, which are paid 
entirely from the City's General Fund. 

A few days ago, I exited the 9th Street off-ramp towards City Hall and under the 
freeway, there was a man with a sign asking for money. I stopped the car to talk to the 
man, and the police officer I was with joined me~witnessing the discussion that 

I identified myself as the Mayor of San Francisco, and asked the man why he must 
beg for money when we have General Assistance in our City. The man explained that 
he was actually from San Diego, but had come to San Francisco eight months ago to 
receive our General Asssistance. He went on to say that he was an alcoholic, and he 
used his General Assistance money to buy liquor. Claiming he had demonstrated 
against Proposition V (General Assistance reform) last week, the man also intended to 
protect his ability to abuse the system. 

General Assistance is specifically for housing, food and substance abuse treatment. 
Proposition V is simply for cost effective controls and the elimination of fraud. 

I am pleased to discuss several important areas where I feel the City is making 
steady progress. When I was elected Mayor, I committed to make San Francisco a 
cleaner City. I believe the results are beginning to show. 

Through an expanded work-fare program, and the ingenuity of the Bureau of Street 
Environmental Services, we have been able to double our manual street cleaning efforts. 
There are now an additional 2,600 receptacles on the streets at no cost to the taxpayers. 

State of the City 

Mayor Frank Jordan 

October 4, 1993 

Page 7 

Likewise, we now have gone to seven day a week mechanical broom street cleaning on 
Mission Street and in other neighborhoods and commercial areas. We are also 
aggressively working to install 27 automatic public toilets for visitors, the general public 
and the homeless. 

Last Spring, budgetary shortfalls forced me to cut-back on a new program aimed at 
cleaning buses. At that time, I directed PUC General Manger Andy Moran and MUNI 
General Manager Johnny Stein to examine how Muni's existing work force could 
produce the same beneficial results sought by the Clean Bus Program, without the extra 

I have noticed that only a few months later, Muni busses are 90% free of graffiti, and 
are much cleaner inside than they've been in recent years. I want to recognize MUNI 
management and workers for their diligence, and encourage them to keep up the good 
work. San Franciscans appreciate it. 

I am also pleased to announce that in the upcoming months, the City will begin a 
innovative Graffiti Abatement Program. The program will feature four fully equipped 
vans, paint shops on wheels, which will work with neighborhood residents and 
businesses. Together, they will attack graffiti on public and private property so that San 
Franciscans can once again, take pride in the appearance of their City. 

A start-up Graffiti Abatement Program was begun two-weeks ago, utilizing D.P.W. 
painters, and youth from the new Mayor's At Risk Youth Employment Program which 
was created through Supervisor Willie Kennedy's legislation last year. It has already 
made a major impact on Market Street. 

I want to thank Supervisors Annemarie Conroy and Kevin Shelley for their 
legislation and support of programs that create a better physical and visual 
environment in San Francisco. I'm particularly excited about Supervisor Conroy's 
pending legislation that will create new abatement laws while strengthening laws 
aimed at prevention, specifically in the area of graffiti. As we work together to make 
our City cleaner, we must also join forces in the effort to make our City a safer place. 

We were all shocked and dismayed by the carnage that took the lives of 9 people, 
including the gunman, at 101 California on July 1st. As a result, I have redoubled my 
efforts to bring about a national gun control policy. In fact, I discussed this very issue 
with President Clinton this morning at the AFL-CIO Convention. He, too, is very 
supportive of a national policy, specifically the Brady Bill. The incident at 101 
California heightened concerns about our 911 response system that must, and will be 

With reports and recommendations submitted to me by the Mayor's Fiscal Advisory 
Committee, the City's Director of Emergency Services Admiral John Bitoff and Police 

State of the City 

Mayor Frank Jordan 

October 4, 1993 

Page 8 

Chief Tony Ribera, I have formed an Implementation Team: This group will oversee the 
development of a combined computer assisted dispatch system which will integrate the 
efforts of our police, fire and emergency medical services functions. 

I would like to recognize the efforts of Public Health and Safety Committee 
Chairman Supervisor Kevin Shelley, as well as Supervisor Bill Maher, in assisting the 
process to reach closure on this vital issue. It is my goal to make San Francisco's 911 the 
best of any system in our State. 

Thanks to the voters of our City, San Francisco is the first city in the country to 
guarantee funding for children's services. This year, my Office of Children, Youth and 
their Families established another first by engaging in a collaborative planning effort 
that included the community and key city departments. This effort will result in 
increased leveraging of funds and utilizes the best resources of city agencies and 
community based organizations. 

We plan to expand the collaborative process next year. Under the leadership of 
Anthony Lincoln, our office has expanded its programs to include Opportunities 1000, a 
new employment placement program which seeks commitment of 1000 new job 
opportunities for young people in the private sector. 

Through my office of Community Development, we have increased our efforts to 
make San Francisco a more accessible city for people with disabilities. I have appointed 
a Disability Advisory Council, and we have proceeded with a transition plan which will 
bring our City into compliance with the Americans with Disabilities Act. 

My Office of Community Development, with the help of Supervisor Willie Kennedy, 
is also developing a Bond Guarantee Program, which will facilitate the award of more 
City construction contracts to local women and minority owned companies. 

In addition to the Bond Guarantee Program, we have also expanded our loan 
program which provides small business loans to businesses located in Bayview 
Hunter's Point, the Mission and Chinatown. 

As your Mayor, I am proud of what this administration has accomplished in the area 
of housing. Since I took office in January of 1992, over 1,000 units of affordable housing 
have been built or rehabilitated. Currently there are over 1,000 units under construction 
and well over 1,000 units in various stages of planning. The units completed and those 
under construction represent over $200 million. 

A few weeks ago, San Francisco received a $50 million allocation from the federal 
government to rebuild Bernal Heights and Plaza East Housing Authority developments. 
Currently, my Office of Housing and the Housing Authority are also preparing a 
redevelopment plan for the Hayes Valley project. The redevelopment of these Housing 
Authority units will be beneficial to the residents, the neighborhoods, and the City. 

State of the City 

Mayor Frank Jordan 

October 4, 1993 

Page 9 

I am pleased to report that earlier this afternoon, President Clinton announced that 
two critically needed San Francisco elderly developments have received federal funding 
of over $9 million. I want to congratulate Mission Housing for their "670 Valencia" 
development and Mercy Housing for their "347 Dolores" developments. 

While I recognize that housing, itself, will not solve many of the problems 
surrounding the homeless, we are increasing our attention to supportive housing with 
social services. In 1993, $7.5 million of housing funds were allocated toward this area. 
In 1994 the amount will increase to $11 million. 

I have established, under the skillful guidance of Linda Mjellem, Director of the 
Mayor's Office of Business and Community Services, a Business Assistance Center 
dedicated to solving problems local businesses may have in dealing with City 
Government. Another way I have tried to cut red tape and facilitate business 
development is with the City's new Construction Service Center. 

This "one stop shop" now processes 60% of all building permits and inspection 
services over the counter. The center unites at one location representatives of City 
Planning, the Bureau of Building Inspection, and the Fire and Health Departments. 

In April, the center will move to 1660 Mission, and services will be expanded to 
include additional permit functions and greater mechanization. Our aim is to process 
80% of all permits over the counter. 

Efficiency was also the goal for transportation projects with which my 
administration has been involved. This year we took a major step to convince Caltrans, 
with the help of the Federal government and the Board of Supervisors, to work with us 
on alternative alignments to the proposed replacement design of the "on and off" ramps 
to the Bay Bridge, the so-called Terminal Separator. 

The incorporation of this project into the ongoing waterfront roadway replacement 
projects will enable us to design the future of our waterfront from the foot of the Bay 
Bridge to Fisherman's Wharf. We continue to work with Caltrans to study options 
related to creating a more modern and efficient regional transit hub in downtown San 

The State is saddled with tens of millions of dollars in seismic and safety code violations 
for the existing infrastructure. I believe the construction of a new regional transit hub 
creates an exciting opportunity for San Francisco to significantly improve a 
neighborhood, while we strengthen the City's commitment to our Transit First 
Policy by creating a more modern, efficient transportation center. 

Civic Center is undergoing a major renaissance that includes construction of a, new 
Main Library, City Court House, Federal building, and State office building. In 

State of the City 

Mayor Frank Jordan 

October 4, 1993 

Page 10 

addition, major renovations are underway or are about to begin on City Hall, the old 
Main Library, the California Supreme Court and Federal Appellate Court buildings. 

The airport will soon begin $2.4 billion in construction of facilities under a master 
Plan approved by the Planning and the Airports Commissions in 1992. The Plan calls 
for the construction of a new International Terminal, a light Rail System, a Ground 
Transportation Center, and related cargo maintenance and roadway support projects. 

The Airport Master Plan construction program will be financed entirely by the 
Airport with no taxpayer support. The Airport Master Plan will be an economic boon 
for the San Francisco Bay Area: 4,000 construction jobs and 12,000 permanent will be 
created and it will increase local tax revenues by $43 million annually, including $10 
million to San Francisco. 

Our Film and Video Office has also greatly impacted our local economy. Filming in 
San Francisco last year, brought an estimated $60 million into our local economy. 
We expect to issue 400 film permits this year. 

It is with the greatest of pride that inspite of all our challenges, we as a City received 
Conde Nast Traveler Magazine's "Number 1 Best Tourist Destination in the World" 
Award. And next week, another dazzling jewel will be added to the City's crown with 
the dedication of the Yerba Buena Gardens. This cultural center will provide new luster 
for our City as a tourist and convention mecca. Still, I will not be satisfied until San 
Francisco is number one for everyone that lives and works here, as well as for our 

And lastly, what about those Giants! 

It was a little more than a year ago when most of the sports press and 85% of the 
general public thought they were gone. I said it wouldn't happen without a fight, and 
with the support and good wishes of the people of San Francisco, the Board of 
Supervisors, civic leaders such as Walter Shorenstein, Peter McGowan, and Richard 
Goldman. Indeed, Don Fisher, Charles Schwab and the other Giants' investors are here 
to stay, and what a season it has been. 

All in all, the challenges are there, but we're meeting them squarely, fairly and with 
an optimistic sense of the future. It is the worst of times and the best of times but this 
my friends is the spring of hope, our "Days for Decisions." 

Thank you very much. 





i T 

ri impNT? 
OCT 11 1994 


Frank M. Jordan 

October 3, 1994 

San Francisco is a great city — through good times and bad. 

We have been through some extremely difficult times. A sluggish economy. 
Decreased funding from the state. Concerns about crime. But, this is only part of 
the story. 

I stand before you today to state that we are turning the tide of these negative forces. 
We are reclaiming our rightful place as the city that is the envy of the world. 

Many American cities continue to recite a litany of supposedly unsolveable 
problems. Not enough money. Crime. Deteriorating streets and parks. 
Homelessness. The list goes on and on. 

But San Francisco will not join in singing the "No Hope Blues." Crying and hand 
wringing are not the San Francisco way. Creativity and hard work are. We are 
making progress. 

• Our streets are safer and cleaner. 

• Our economy is rebounding. Job loss has bottomed out. New jobs and 
business growth are on the horizon. 

• Local government is being restructured to maximize services and 
minimize costs and taxes. 

• We are spending millions -- in fact more than $73 million annually to 
help the homeless. 


Let me assure you that I know crime remains the number one concern of most 
people. This, despite the fact that major crime has dropped 26% during the last two 
years of my administration. 

This year alone, homicide is down 21%. Rape, down 23 %. Burglary, down 27%. I 
realize these statistics provide little comfort when you or someone you know is a 

I want you to know that I won't be satisfied until the citizens of San Francisco FEEL 
safe again, regardless of the declining crime rate. 

To fulfill my campaign pledge, last November I directed the Police Department to 
implement full staffing -- 1,971 officers. 

State of the City 
Mayor Frank M. Jordan 
October 3, 1994 
Page 2 of 13 

History was made this month when the first three female captains were sworn in 
and became members of the Police Department's upper echelon 

I pledged a return to community policing — a model I pioneered in the Police 
Department. Community policing means neighborhoods working together with 
police, building trust, credibility and communication. For example, cooperation 
between residents of the Haight Ashbury and the police this year has significantly 
reduced crime in that neighborhood. The same approach is being implemented in 
the Polk, Excelsior, and Mission districts. Similar programs will be developed in all 
the city's neighborhoods as soon as possible. 

Crime, as we all know, is a national problem. That is why I assisted Senator 
Feinstein in banning assault weapons. San Francisco is proud to have helped. But, 
the survivors and relatives of the victims of the massacre at 101 California, along 
with Handgun Control Incorporated, made the most compelling and convincing 
case in lobbying for the bill. I commend them for their successful efforts. 

At the request of President Bill Clinton, I played a prominent role in the passage of 
the U.S. Crime Bill. 

It will: 

• Put more uniformed police on our streets. 

• Help us institute a Drug Court that refers first time drug offenders to 
treatment rather than to jail. This will save money by reducing jail 
overcrowding. This will free up police for other duties, decrease drug 
addiction and the crime which results from it. 

• Provide new resources to build upon successful prevention efforts such as 
midnight basketball and our community partnerships and our Summer of 
Safety programs. 

But, my administration is not idly standing by waiting for Washington, D.C. to help. 

• We expanded the High Risk Youth Employment Program which gives "at 
risk" youth opportunities for jobs and training. 

• Also, my Gang Prevention Program is taking aim against violence caused 
by youth gangs by working directly with young people to help them find 
positive directions for their lives. 

• In addition, I am preparing legislation for a curfew law to make certain 
that youth under 17 are off the streets late at night. Unsupervised young 
people standing on street corners in the early morning hours are at risk 

State of the City 
Mayor Frank M. Jordan 
October 3, 1994 
Page 3 of 13 

either as victims of criminals or of being lured into criminal activity. As 
Mayor, I want families to take more responsibility for their children. 

• I am particularly pleased to announce that significant progress has been 
made in staffing the 911 facility at 850 Bryant Street. We now have a full 
complement of 144 people, although some are still training and a few are 
on medical leave for job related issues. 

• Our state-of-the-art Emergency Command Center is fully operational and 
an updated emergency plan, developed by my Emergency Services Task 
Force, will be released in November. I am working closely with police, 
fire, health, and CAO staff, as well as personnel from other departments in 
developing the new combined Emergency Command Center the voters 
approved for construction. I believe it will be among the finest in the 
country when completed. I want particularly to thank the Board of 
Supervisors for its help in this endeavor. 

Let me emphasize that whether it is full police staffing, more police on MUNI, more 
uniformed officers in the neighborhoods, community policing, gang prevention, 
MATRIX, curfews, high-risk youth programs or any of the other anti-crime and 
violence prevention programs we provide, I promise the people of San Francisco 
that fighting crime on all fronts, and winning that war, is this Mayor's number one 


Let me now turn to one of the city's most challenging issues and one which 
demands dramatic improvement if the public is to be satisfied. I refer to the city's 
MUNI transit system. 

Nearly 100 days ago, I swore in the first Transportation Commission. The new 
commission met a campaign goal of mine through voter approval of Proposition M. 
It separated MUNI from the Public Utilities Commission and gave authority over 
MUNI to the new commission. 

MUNI's new general manager Phil Adams is currently preparing a strategic plan 
which will be presented to the Commission later this month. In compiling the plan 
he has received tremendous input from MUNI riders and MUNI employees to 
identify long standing problems and plan their solutions. 

And solutions there will be. MUNI will be reliable, safe and clean. That is my pledge 
-- no matter what it takes. 

I can tell you one thing that is not needed to solve MUNI's problems and that is 
passage of Proposition O next month. Don't be taken in by talk that it is only a study. 

State of the City 
Mayor Frank M. Jordan 
October 3, 1994 
Page 4 of 13 

It is step one in a massive $54 million taxing scheme, and it subverts the efforts of 
the new Transportation Commission and general manager, even before they have a 
chance to do their job. 

We do already know, however, that MUNI must revise its -routes to meet the 
changing needs of its riders It also must develop a reliable schedule. No rider 
should have to wait 15, 20 or even up to 45 minutes for a MUNI vehicle and then 
witness three busses or light rail vehicles showing up at the same time. 

The recent creation of the Safe Transit Enforcement Program (STEP) increases the 
number of police officers on MUNI to 50 and includes the assignment of a Police 
Captain to head the unit. In addition, the officers assigned to MUNI will be 
augmented by uniformed officers from all of the district stations. 

Our successful efforts to control MUNI graffiti should also be viewed as a clear sign 
that my commitment to make MUNI a model public transportation system is firmly 
in place. 


Cleaning graffiti from busses is only part of my commitment to restoring San 
Francisco's reputation as one of North America's cleanest cities. With the 
leadership of the Department of Public Works, assisted by the Department of Social 
Services, the Sheriff's SWAP program, and volunteer neighborhood groups, our 
streets definitely show improvement. 

We have tripled the Workfare street cleaning program from 50 workers to 150 per 
day. We have restored Sunday street cleaning. We have increased cleaning of the 
main artery streets from three days a week to seven. We have added 1,100 new litter 
receptacles for a total of 3,300. 

Specially trained workers using four state of the art anti-graffiti vans now travel the 
city eliminating graffiti by painting over it in the exact color of the surface that was 

Equally dramatic is our Eco-Blitz program which can saturate a neighborhood with 
soda blasters, steam cleaners, flushers and heavy duty street cleaning equipment that 
clean up the streets and eliminate graffiti, thereby setting a new standard for 
cleanliness in the neighborhoods. 

A key part of my goal for improving the quality of life in our city will soon become a 
reality — self-cleaning public toilets. After two years of planning and lengthy debate, 
this practical and much needed public facility will finally be available for residents 
and visitors alike. 

State of the City 
Mayor Frank M. Jordan 
October 3, 1994 
Page 5 of 13 


Earlier you heard me refer to the city's $73 million homeless program. I hope that 
captured your attention and will lead you to a clearer understanding of the scope of 
the city's efforts to address homelessness, our most pressing social problem. 

The fact is, both the media and the public have confused the city's homeless 
program with the MATRIX program for more than a year. I hope to be able to 
explain the difference here in the clearest, simplest possible terms, and have it 
accurately reported to the people of San Francisco. 

Within a few weeks, my Homeless Budget Advisory Task Force will receive the 
results of an independent study of our homeless program. It will document that the 
city annually spends slightly over $73 million to provide services for the homeless 
and will help us shape future policies on how every dollar is spent in this critical 
area. The services range from health treatment and eviction prevention to General 
Assistance to numerous other services aimed at ending the cycle of homelessness 
and placing people on a track that will result in permanent housing and 

This $73 million comprehensive effort to provide a continuum of care for the 
homeless is entirely separate from MATRIX. 


MATRIX is a separate program which has a budget of approximately $640,000, half of 
which goes for law enforcement and half of which goes to pay health department 
and social services department personnel. 

MATRIX has two parts. One specifically targets those on the streets who need 
medical or social services but either don't know how or don't want to obtain it. 
Social services workers and mental health workers offer to help people get these 

The other half of the MATRIX effort is law enforcement. Most of the citations given 
are for public intoxication, while the majority of the actual arrests are for dealing 
drugs or other felony crimes. 

Let me say it again: 

San Francisco's continuum of care which attempts to break the cycle of 
homelessness is a $73 million annual expense. MATRIX is a keystone of our 
quality of life effort. We pioneered it to set minimum standards of behavior, to 

Slate of the City 
Mayor Frank M. Jordan 
October 3, 1994 
Page 6 of 13 

reach out to the people on the streets who can't help themselves, and to capture 
individuals who mask their criminal activities under the guise of homelessness. It 
has received considerable positive national press. But, most important, it works and 
I remain 100 percent in support of it. 


Our public health system faces enormous challenges as the nation, state, and city 
engage in seemingly endless debate. 

My top priorities for the Health Department are to streamline operations and 
improve the delivery of health services, and to develop the means to compete 
successfully in the new environment of managed health care. 

Great medicine is taught and practiced at SF General. For example the trauma center 
and AIDS treatment ward are recognized nationwide as the best in the country. 

Let me say very emphatically: I will do everything in my power to protect safety net 
health services. Poor people deserve the same access to quality health services as all 
other citizens. And, despite the threat to county hospitals up and down the state, as 
long as I am Mayor, San Francisco General Hospital will not close. 


No discussion of public health can exclude specific focus on the tragedy and horror 
of AIDS. 

After nearly a decade and a half, AIDS continues on its devastating path. Since 1981, 
there have been more than 20,000 reported AIDS cases here. More than 13,000 
people have died. I doubt that there is a person listening to me who has not lost 
friends or loved ones to AIDS. 

Fighting the suffering caused by AIDS remains a top priority of mine. That is: 

• Why I supported a board resolution in support of the medicinal use of 

• Why my Office of Community Development has provided grant funds in 
support of the HIV/ AIDS Life Center and for housing for people with 

• Why in 1994 we increased our Ryan White funding 40%, from $38 million 
to $70 million. 

State of the City 
Mayor Frank M. Jordan 
October 3, 1994 
Page 7 of 13 

• Why my office gave $75,000 to Mobilization Against AIDS to continue its 
federal and grass-roots advocacy. 

• Why every few weeks I declare a medical state of emergency which makes 
possible needle exchange to help stop the spread of AIDS. 

Finally, I will continue to work with Dr. Sandra Hernandez and the Health 
Commission to ensure that San Francisco's health system remains the very best. 


The future of the city is directly linked with the ability to provide jobs. 

We have laid the groundwork for an economy that will create the jobs we need 
today and the jobs we will need tomorrow. The pieces are in place for a powerful, 
expanding, job-generating economy. 

My administration has worked tirelessly through the Redevelopment Agency, both 
large and small business organizations, and other avenues to stop the downward 
trend in employment, cultivate retention of existing businesses and attract new 
ones. An additional goal has been to develop new, mutually beneficial business 
from other countries ranging from China to Mexico. 

I have given an aggressive mandate to the Redevelopment Agency to: 

• Fuel economic recovery through such initiatives as speeding completion 
of the $85 million Yerba Buena Gardens project. 

• Intensify efforts to convert Hunter's Point Naval Shipyard and Treasure 
Island to long term, economically productive public/ private partnership 
uses, and to stimulate economic development in the Western Addition, 
particularly on lower Fillmore Street. 

• Pursue with the full support of the community and the revitalization of 
the Southeast community area, with special emphasis on the Third Street 

Working with the Chamber of Commerce and other business groups, my 
administration continues to be successful at business attraction and retention. 

Examples include: 

• The new PriceCostco store, employing 350 workers - 81 % San Franciscans. 

State of the City 
Mayor Frank M. Jordan 
October 3, 1994 
Page 8 of 13 

• The creation of a corporate headquarters for AirTouch wireless 
communications at One California, employing 250. 

• The establishment and expansion of Citicorp's offices resulting in San 
Francisco being declared the company's international banking center. 

• Numerous new foreign airlines beginning service to San Francisco 
International Airport, including Virgin, Royal Dutch, and Aeroflot's direct 
Moscow to San Francisco service. 

Union Square area is experiencing a rebirth with the restoration of the Historic 
Flood Building and its tenants: The Gap, Urban Outfitters, Wherehouse 
Entertainment, Woolworth, and others. 

Also planned for this area is a 95,000 square foot Nike Town, a Virgin Megastore, 
and a Planet Hollywood restaurant. There will soon be a ribbon cutting at 400 Post 
St. at Powell for a complex that includes: a Disney Store, Morton's Steak House and 
Border's Books. 

The strengthening of Union Square as California's premier retail district will add 
new incentives for local shoppers and tourists to come to San Francisco. It will also 
provide jobs for our residents, and revenue for city services. Just last Friday in the 
Chronicle the planned opening of the world's largest Ann Taylor women's apparel 
store was announced for the area. On this same page was a story about San Francisco 
having its best tourist year since 1988. 

My office of International Commerce and Trade — following up on trade missions I 
led to Asia and Mexico — has made great progress in establishing mutually beneficial 
trade fairs and new businesses both here and abroad. Among their many 
accomplishments is the first Memorandum of Understanding with Ho Chi Minh 
City, and the bringing of a Vietnam Trade Fair here. It is the first Vietnamese trade 
fair to be held in the United States. 

This office also worked to bring the Xian Terra Cotta Warriors Exhibition to San 
Francisco, and recruited and hosted the first ever Beijing Trade and Investment Fair 
in the United States in which 100 Chinese companies were represented. 

As a result of San Francisco sending the first trade mission to Mexico after the 
NAFTA Treaty was signed and mutually beneficial business has been developed 
between San Francisco firms and Mexican companies. The same type of business 
relationships have followed our trade mission to Asia. 

My commitment to development of international trade extended to being a strong 
supporter of a new Bay Area organization - BAYTRADE —. to serve as a catalyst for 

State of the City 
Mayor Frank M. Jordan 
October 3, 1994 
Page 9 of 13 

increased exporting from our area to foreign countries. I met with Oakland Mayor 
Elihu Harris and San Jose Mayor Susan Hammer to help begin the regional effort. 
To enhance our foreign trade possibilities I took the lead in bringing BAYTRADE 
into the San Francisco picture. The regional organization assists small, medium 
and minority-owned businesses to find new global markets for their products and 
services. BAYTRADE has the potential of producing thousands of new jobs in the 
Bay Area. 


I also want to mention some other economic development highlights which will 
contribute much to the city's well being. 

• We negotiated a site for a major new Federal Office Building at Tenth and 
Market. The State has recently announced plans to construct a new building in 
Civic Center. These federal and state commitments to stay in San Francisco will 
not only keep existing jobs in place, but produce new jobs as well. 

• My office worked with the Federal Highway Administration and Caltrans to help 
redefine how our downtown will look. We convinced Caltrans not to rebuild an 
antiquated, elongated, and ugly series of on and off ramps leading to and from 
the Bay Bridge. 

This makes available 10 acres of prime downtown property for development. 
Coupled with the Transbay Transit Terminal study which is about to begin, San 
Francisco has a chance to revitalize a downtown neighborhood and create a 
regional transit hub to serve the Bay Area well into the next century. 

• This report would not be complete without congratulating the citizens who have 
made possible the construction of our New Main Library which will open next 
year. It truly was a community- wide effort, with more than 15,000 people from 
all parts of the city making contributions to meet the $30 million goal. I also 
want to extend my congratulations to the Library Commission which has held 27 
public meetings attended by more than 5,000 people to determine how 
Proposition E funds will be spent. The commission will issue a report soon. 

• On my very first day in office I met with University of California Regents to 
underscore my commitment to provide for the medical expansion needs of the 
university in San Francisco. I continue to meet monthly with UCSF Chancellor 
Joseph Martin to discuss UCSF's short and long term expansion needs. I am very 
pleased that San Francisco has been chosen as the only location of two possible 
sites for its first 100,000 square foot development. 

State of the City 

Mayor Frank M. Jordan 

October 3, 1994 

Page 10 of 13 

Enhancing San Francisco's transportation system is the San Francisco 
International Airport's $2.6 billion expansion. San Francisco voters have 
mandated the expansion should include a BART station within the airport. 

The expansion will accommodate an increase in passengers annually from 31 
million to 51 million over the next 20 years with an estimated 6,000 new jobs for 
San Franciscans. 

I've already mentioned the base conversion efforts for Hunter's Point and Treasure 
Island. This past weekend, I participated in the transition of the Presidio military 
base to a United States National Park. This environmental wonderland is one of 
the few national parks completely within an urban setting. There are many people 
to be congratulated — both here and in Washington. The magnitude of this 
accomplishment will become clearer as the next few years unfold. I'm honored that 
this transition occurred on my watch. 

I'd also like to mention some specific initiatives of the Mayor's office that I 
believe make significant contributions to the city. 

I have created a city-wide Neighborhood Liaison Program assigning individual 
members of my staff to specific neighborhoods. They respond to individuals, 
organizations and merchant associations concerns and issues of importance to 
the neighborhoods. 

Among the many achievements of the Mayors Office of Children, Youth and 
Families, Economic Opportunities (EO) 1,000 has been established as a "bridge" 
between job training and potential jobs. 

I have charged EO 1,000 with identifying 1,000 interview pledges per year to help 
move people from the educational system to real employment. 

In addition, the Mayor's Office of Children, Youth and Families is funding 56 
collaborative organizations made up of 300 nonprofits, five City Departments, 
and the School District, offering a variety of services to children, youth and 
families. The services are offered from Bayview Hunters Point to the Richmond, 
from the Mission to the Sunset, from the Western Addition to the Tenderloin. 
Never before have city and community based agencies worked together for the 
youth of San Francisco. 

A few of the highlights the Mayors Office of Community Development include 
the initiation or expansion of 145 small businesses; renovation of 65 community 
facilities allowing for additional services for approximately 70,000 low and 
moderate income persons; 766 new housing units, plus 97 new beds for 
individuals in supportive housing programs; 600 clients completed job training 
programs, 2,200 clients were able to secure employment, 5,000 received legal 

State of the City 

Mayor Frank M. Jordan 

October 3, 1994 

Page 11 of 13 

assistance, 150,000 received meals or food supplements, 1,850 received 
educational services, 850 clients received child care support, 1,600 clients 
benefited from recreational services, and 4,500 clients received housing 
counseling and support. 

• My Chinatown Task Force in the interest of public safety has worked with PG&E 
to light all of Chinatown from Bush to Broadway and from Stockton to Kearney. 
The plans also include architectural lighting at the Bush and Grant gateway to 
Chinatown similar gate lighting and additional dragon lights for Portsmouth 

My office of housing has delivered what seems like true miracle. After nearly 
two decades, the saga of the International Hotel is finally over. The now 
infamous gash in the ground will soon house a school, living quarters for elderly 
Chinese and Filipino Americans and other needed services. The new facility at 
the old International Hotel site will help remedy a sad, long standing injustice 
in San Francisco history. 

• I am also proud to report that the Mayor's Film Office continues its record of 
growth and achievement. Acquisition of two giant hangers at Treasure Island for 
use as sound stages, truly makes San Francisco Hollywood North. Currently, 
New Regency pictures is using one, and Disney is using the other. A record 430 
permits are expected for film companies this year and a record $75 million in 
money spent in San Francisco is anticipated from the feature films and other 
filming activities that take place. 

Let me say that the impressive list of economic projects I have mentioned this 
afternoon is only part of the picture. There is much more. San Francisco is 
definitely on the move economically. 


For all of our progress, there are challenges that continue to exist. In short, we can 
clean up the town but it will mean nothing if we don't clean up our own fiscal 
house and the waste that continues to exist in government. 

Labor, business and City Hall worked together earlier this year to develop a ballot 
measure that will eliminate automatic city employee pay raises and mandate that all 
future employee salary negotiations take into account the City's ability to pay. More 
than $30 million will be saved with this agreement. San Franciscans can now do 
their part in this reform by voting "Yes" on Proposition F. 

More than $70 million was saved when a settlement was reached between the city 
and the Service Employees Union, Local 790 during an arbitration taking place 

State of the City 

Mayor Frank M. Jordan 

October 3, 1994 

Page 12 of 13 

separately, but at the same time as the ballot measure negotiations. Between the two 
separate negotiations more than $100 million was saved. 

The criticism of the city's fiscal management system is not a condemnation of our 
outstanding city employees. The great majority of them are loyal and hardworking 
and have remained dedicated even during severe times of fiscal crisis. 

The City budget continues to face annual shortfalls. For the 1994/95 budget, my 
office worked cooperatively with the Boards of Supervisors to implement zero- 
based budgeting. And while I do not agree with the Board's decision to raise taxes, I 
believe that our ability to agree on all but $4 million of a $2.8 billion budget is good 
news for San Francisco. 

To avoid budget problems in the future, we must cut the cost of government. 
While we have worked hard at streamlining, we have only begun. I plan to 
announce a Blue Ribbon Committee of citizens, business leaders, governmental 
representatives and labor officials to achieve further governmental efficiency. 

We must downsize city government, but we can't do it at the expense of vital 
services. Some of the areas I will ask the committee to explore are revenue 
enhancement, human resources and attrition management, and information 
systems technology. 

We still have monumental governmental inefficiency created by our City Charter. 
The voters mandated last November that we restructure the Charter and the way 
the City functions. We fell one vote shy on the Board of Supervisors this year in 
meeting the directive of the electorate. We must try again. . . . and succeed. We will. 

In these times when the state of California borrows $7 billion to balance its budget 
and moves to a lower bond rating, when city after city faces financial disaster, San 
Francisco still maintains its high bond rating, still provides high levels of services, 
and is fiscally sound by any measurement. 

Two and a half years ago I ran for public office for the first time. I ran as a "citizen 
mayor." Bottom line, it meant that I was a common sense, no nonsense guy who 
wanted to see the city improve and had a list of practical goals I wanted to achieve. 

What I have done is identify the possible. The practical. The doable. The things I 
know people care about and want. 

I would rather face the daily barrage of criticism, work hard on achieving what is 
practical and possible, and hope that at the end of my time in office people will 
understand that my goal is not the enrichment of Frank Jordan. 

State of the City 

Mayor Frank M. Jordan 

October 3, 1994 

Page 13 of 13 

My goal is much more important: It is to contribute in every way I can to the 
renaissance of the greatest city in World — San Francisco. 

The City has recaptured its can-do spirit. We shall again flourish as a city for the 
benefit of all. 

With our creative and cultural diversity, our hundreds of unique neighborhoods, 
our talented artists and hardworking merchants, our far-sighted innovators and our 
daring young entrepreneurs, our loyal services workers and technicians, we are on 
our way to strengthening our status as a world class city, and a major Pacific Rim 

Thank you very much. And, particular thanks to each member of the Board of 
Supervisors. We agree. We disagree. But, regardless of our differences or 
agreements, I have no doubt that each of you loves this city and wants what is best 
for it and its people. Let us continue to work hard together and find more ways in 
the future to agree rather than disagree. 

# # # 


Office of the Mayor 
san francisco 

Willie Lewis Brown, Jr. 





OCTOBER 15. 1996 

OCT 2 3 1997 


PLEASE NOTE: Deviations from and additions to this speech should be anticipated. 


(41 5) 554-6141 


Welcoming remarks to the elected family of the City and County of San 
Francisco, to members of the audience and to all citizens of San 
Francisco. . ' 

When I assumed the office of Mayor of the City and County of San Francisco 
on January 8, 1996, 1 brought with me 31 years of public service experience. 
Thirty-one years of successful collaboration. Thirty-one years of crafting and 
moving legislation. 

Thirty-one years. 

My skills were put to the ultimate test in last year's brutal mayoral campaign. 
After more than 70 neighborhood debates, after countless mornings at Muni 
stops, after hundreds of community meetings, after listening and talking to 
hundreds of thousands of people, I came away with a clear sense of what was 
on your minds. 

I saw close up that this was a city whose populace could argue passionately, 
intelligently and convincingly on the merits of a cross-town sewage tunnel, on 
arcane residential zoning laws, on traffic patterns, 

In the past nine months as mayor of this city, I have continued our dialogue 
More than 100 of you have come through my office during my Mayor's Open 
Door days to tell me of your fears, your worries, your ambitions. I have talked 
to thousands more of you during our three summits on the economy, on 
health, on youth and families, during our street-sweeping excursions, at 
community meetings and in chance encounters on the streets. 

I have heard and responded to the things on your minds. 

The past nine months have been devoted largely to assessing the situation, 
clearing the debris and pouring the concrete for the foundation. We've 
accomplished a great deal, and a list of my administration's achievements has 
been compiled and will be distributed at the close of my remarks. 

But I'm much more concerned with and excited about the future. 

More than 150 years ago, the 49ers and a melting pot of immigrants came to 
San Francisco, bringing a hardiness of spirit and a sense of adventure. They 
came looking for gold, but stayed for the promise of opportunity. That spirit is 
within me still. It's within all of us. We just have to find it, nurture it, be 
daring and bold and creative. 

We do this by addressing in a meaningful way our city's economic 
development plans, its housing and its quality of life and the government 
reform that must take place to move us into the 21st century. 


To stand still is to go backward, one speaker told us at the economic summit I 
convened in April. 

This statement is never more true than when applied to the subject of jobs. 
The summit clarified for us the steps needed to ensure the creation of new 
jobs and the retention of existing jobs. 

As promised, I have created a new Office of Economic Development and 
staffed it with three exceptionally talented people. Their mission is two-fold: 
to work with other city departments and the private sector in attracting new 
national and international business enterprises; and to develop a plan for 
successful business retention. 

The team already has implemented much of my five-point action plan drawn 
from the economic summit and is well on its way with the remainder. 

But we must do more. 

Next month we will conduct a trade and goodwill mission to Paris. 
Accompanying me will be 20 to 25 CEOs and senior executives from the 
fields of investment, venture capitalism, bioscience, multimedia and research 
and development. We will be bringing business back to San Francisco, I 
guarantee it. 

Early next year, we will conduct a similar mission to China, Hong Kong and 
Taiwan for the purposes of mutual trade and economic development. In the 
spring of 1997, San Francisco will host a major one-day conference on 
business issues related to the transition of Hong Kong to China and a second 
conference on trade and investment policies with Great Britain. All of these 
missions will bring business to San Francisco. 

I have revitalized the Small Business Commission with new appointees and a 
liaison to my office. We have conducted community lender workshops to 
educate residents on small business loan applications. A 24th Street 
merchant's summit is yielding new ideas for development and continuity of 
purpose for the area. The Mayor's Office of Community Development has 
received $56 million HUD grant for the development of small businesses and 
another $150,000 grant to promote women and minority-run businesses. 

We must do more. 

As promised, we have turned our attention to the nurturing of burgeoning 
industries, such as bioscience and multimedia. I want to make San Francisco 
the multimedia and bioscience capitals of the universe. 

I currently am reviewing resumes of four very strong candidates for the 
position of Telecommunications czar. 

In conjunction with the San Francisco Partnership, a consortium of some of 
the most important names in business including Charles Schwab, Don Fisher 
of The Gap, Doug Shorenstein and executives from PG&E, Bank of America 
Levi Strauss and Pacific Telesis, I have sanctioned a blue-ribbon task force of 
50 of the area's leading multimedia companies. I have appointed Mark 
Chandler as my liaison to the task force, with assistance from my webmaster, 
Michael Duffner. 

We are preparing to conduct a first of its kind multimedia survey in San 
Francisco — paid for by a grant from the Redevelopment Agency — to assess 
the infrastructure, training and opportunities in the multimedia industry. This 
survey will assist the multimedia task force in formulating an action plan. 

This is a wonderful example of the type of public-private partnership that will 
help take us where we need to go. 

We are in active negotiations with UC-San Francisco to locate its second 
campus on a 43-acre site at the southwest corner of Mission Bay. It is one of 
three Bay Area sites being considered by the university. The 3.5 million 
square foot laboratory would be for biotech research only, a type of facility 

that without exception results in the co-location of private spinoff enterprises. 

The Bay Area Life Sciences Alliance has taken on lobbying for this project as 
a direct result of information discussed at the Economic Summit. 

Let me walk you across the city and tell you what exciting things are going 

The downtown retail district is prospering. We have opened Bulgari's, Virgin 
Records and Nike World. Macy's is currently renovating part of the old I. 
Magnin store on Union Square for a home furnishing center, the first in 
downtown San Francisco, and The Gap is considering plans to locate a large 
store in the same building. 

In coming months, the Redevelopment Agency will target the North of 
Market area, where both good planning and serious restructuring are needed 
to make this a safe, economically prosperous part of our city. Similar plans 
are under way by my office of community development for the area along San 
Bruno Avenue. Again, this is an area in need of redevelopment. The potential 
for jobs and new small businesses in these areas is huge. 

There are exciting things going on in the southeastern side of the City. 

At Mission Bay, my negotiating team, headed by Rudy Nothenberg, David 
Prowler and Marsha Rosen has succeeded where 10 years of negotiations has 
not: getting the project off the starting block. I have endorsed the plan, 
worked out with the Catellus Development Corp., as one that is both 
economically feasible and environmentally sound. 

Two of our biggest projects include the Giants stadium, the waterfront plan 
are two of the biggest. We also will complete the Muni Metro Turnback 
Project in the Market Street Tunnel and begin environmental work on the 
Bayshore Corridor project. 

We are in active negotiations with the 49ers to build a state-of-the art football 
stadium and retail complex on the 75-acre, city-owned Candlestick Park. Our 
share of tax revenue from both the stadium and an upscale retail mall would 
means millions of dollars every year. 

An urban design and land use plan for that sorry-looking structure known as 
the Transbay Terminal has been approved by the Planning Commission and is 
scheduled to move into the public comment phase before the end of the year. 
We expect to formally designate the area as a Redevelopment site by fall of 
1997. The plan calls for major mixed use development — housing, commercial 
enterprises and a strong emphasis on open space. I anticipate that the 
Transbay Terminal itself will be torn down and replaced with a new transit 
hub for the City. 

We anticipate that by the end of the year, we will formalize our lease 
agreement with the Navy for the Hunters Point, although we have been 
working with the Navy to introduce interim uses for the shipyard. 

We reported good news a few weeks ago with the announcement that Serpac, 
a consortium of cargo carriers serving South and Central America, would be 
returning to the Port of San Francisco. Early next year, the port will begin 
renovation of the Ferry Building and Terminal and will complete the City's 
only publicly accessible boat ramp at Pier 52. 

Moscone Center is operating at capacity and is sold out through 1998. The 
expansion project is proceeding, under the direction of an architectural team 
selected in July. When completed in 2001, the expansion will create 2,000 
new permanent jobs, boost our economy by an estimated $200 million a year 
and generate millions of dollars in new tax revenue to the City. 

With increased convention activity, our need for hotel space also will 
increase. Our hotels currently operate at 75 percent occupancy rate, one of 
the highest in the country. The Moscone expansion is expecting to generate 
an additional S3 million in hotel taxes alone. Construction is set to begin soon 

on a new 440-room hotel next to the Museum of Modern Art; we anticipate it 
opening in 1998. 

Construction on the Yerba Buena Gardens Sony entertainment center, which 
will include a cinema complex and Imax theater, will begin by the end of the 
year, with a targeted opening date of December 1997. 

The redevelopment of Treasure Island also is on the front-burner. People ask 
me what I want for that beautiful location. My first choice would be to move 
City Hall there so that every single day I could enjoy the splendid view of the 
city I love. 

But even better will be to create a site that will entice the world. A site where 
millions of people every year will witness the beauty of San Francisco. I want 
housing, film production studios, soccer fields and parks. I want jogging 
trails, dog runs and restaurants. Next year, the San Francisco Police Academy 
will relocate to Treasure Island and the San Francisco Fire Department will 
open a state-of-the-art training facility. 

Film work is already under way at Treasure Island, and that brings me around 
to one of those "intangible" cash cows ~ the filmmaking industry. So far this 
year, eight full-length feature, including "The Rock," "The Game," "Flubber" 
and "George of the Jungle" and one television series — Nash Bridges, with 
my good friend Don Johnson — have been filmed in San Francisco. That's 
double the number of feature filming since last year. Together, these films 
have brought in an estimated $60 million to the City, not to mention the 
publicity. These figures do not include other television work, commercials 
and low-budge features. 

Other exciting development projects going on the City include the expansion 
of the Kaiser Hospital and the Fillmore Jazz Preservation District. 

Despite incentives offered by the city of Oakland, Kaiser Pennanente is 
moving ahead with its expansion plans in San Francisco, in the area near 
Geary Boulevard and Post Streets. The project is on schedule. 

Just down the street, the Fillmore Jazz project, which will revitalize and 
transform the street Geary Boulevaard and Eddy Street, also is moving 

forward. Agreements are expected to be finalized in the next month with two 
acclaimed local jazz clubs. The project also will include an eight-screen 
cinema complex and streetscape improvements. 

We will build a new youth center in the Excelsior and a gay and lesbian 
community center in the Castro. 

To the south, the San Francisco International Airport's $2.4 billion expansion 
plan is on schedule, and we plan to open the international terminal in the 
spring of the year 2000. 

Clearly, we are on the move. 


All those who came together at the economic summit — many for the first 
time — were in agreement that affordable housing is a major building block to 
a healthy economy for all San Franciscans. 

My administration has completed and/or broken ground on some 1,300 
affordable housing units, with another 2,000 in the development stage. We 
have tripled mortgage credit assistance to first-time homebuyers. We have 
received nearly $40 million from the federal government and a $100 million 
commitment from the AFL-CIO National Housing Trust. 

Under the direction of my chief executive for housing, Marsha Rosen, we will 
expand homeownership opportunities for low and middle-income families by 
acquiring and rehabilitating vacant homes for first-time buyers and by 
working with church and community groups to preserve existing housing. 

During my administration, we will begin construction of the International 
Hotel and secure funding for its Filipino American Cultural Center. 

We have jumpstarted the Mission Bay project, which will produce 3,000 new 
units, 20 percent of which will be for low and middle income families. By 
December, we will see completed 27 affordable housing units at 7th and 

Natoma streets, 66 condominium loft units at the historic Oriental Warehouse 
at South Beach and 28 units at Garnett Terrace in Bayview Hunters Point. 

By spring of 1997, we will have begun construction on 233 rental units at 
Embarcadero and Second Street, and another 165 assisted living units in the 
Western Addition. 

We also will begin constmction of housing for people with disabilities in the 
South of Market area and new housing for seniors in Bayview/Hunters Point . 

To facilitate and expedite these projects, we need passage of a $100 million 
affordable housing bond — known as Proposition A — on the November 
ballot. Affordable housing benefits every single San Franciscan. 

We will see changes in the public housing system. Under the direction of 
HUD, we will see a redesign, a revitalization and a rebuilding of housing at 
North Beach, at Bernal Dwellings, at Plaza East and at Hayes Valley. I am 
confident HUD will help me realize my goal of making these units 
indistinguishable from the fabric of San Francisco real estate. 

A discussion of housing would incomplete without addressing those who are 
without housing. 

It's a simple fact: No home means no economic opportunity, no quality of life, 
no hope. 

This clearly is an issue that transcends San Francisco and one with which 
every city in America is grappling. We will find little relief from Washington 
or Sacramento. We must work together locally to find the solutions. We have 
a moral and civic responsibility to those San Franciscans living on the streets, 
and ignoring the issue comes at great social and economic cost. 

The $19 million McKinney Act award, the largest per capita award in the 
country, will fund 22 separate programs for housing, job training and support 
services for homeless families and individuals. 

But we must look to our own community for more answers. Sometimes the 
steps are small: free tokens for the public toilets, 20 General Assistance 
recipients hired to clean up storm damage, a few more beds, a few more jobs. 

It is a challenge to us all to step up to the plate with jobs, with services, with 
opportunities for those who are without. 


But what of our quality of life? What does that mean -- quality of life? 

Quality of life means opportunity, safety, comfort and an array of services. It 
means recognizing that early intervention can stop problems before they 
become problems, a philosophy to which I and all my department heads 
subscribe. This belief is driving much of my administration. 

Quality of life means feeling safe on the street and in your neighborhood. 
This, too, is accomplished one step at a time. 

Our cops on buses program resulted in a 51 percent decline in crime on Muni 
in the first six months of this year. 

Police Chief Fred Lau and Deputy Chief Earl Sanders have doubled the 
number of officers in the narcotics unit, and as a result, the department has 
seen a significant drop in street dealing in Oceanview park, in the Western 
Addition, in Bayview/Hunters Point, and in the Tenderloin. Take a walk 
down Taylor Street, spend some time in Boedekker Park, there are fewer 
dealers on the streets. 

The police department is working with the District Attorneys office in the 
increased prosecution of drug cases. But Chief Lau understands that 
education, not incarceration frequently is a better way. 

We will be increasing our use of alternative programs, such as the Drug 
Court, which will be expanded beyond those charged with possession of 
narcotics. People who possess small amounts of narcotics are not the only 
people with substance abuse problems. Many shoplifters and other small time 
burglars are committing this crime to support their habits. Drug Court must be 
available to them also. Expansion of this program will be paid for with a 
federal law enforcement block grant. 

At this month's Youth and Family summit, Marian Wright Edlemen spoke to 
us about the church in New Haven, Conn., that began taking care of its 
downtrodden and ended up spawning a community-wide program addressing 
any number of social problems. 

In that vein, on Oct. 30, we will launch a six-month pilot mentor program for 
first-time drug offenders. Here's how it works: Once arrested, those 
considered eligible for the program will be turned over to the courts. The 
courts will then assign each individual a mentor, who could be a former 
addict, a community member, a person qualified to lead. The offender will be 
given an education assessment, and throughout the program will work toward 
their GED and receive vocational training. 

Chief Lau also has doubled the number of officers in the domestic violence 
unit, and I have provided funding for three new district attorneys to handle 
domestic violence cases. 

But we all know the police can't be everywhere at all times, and once again, 
we must look to ourselves for the answers. 

Through Chief Lau's extensive community outreach meetings in every single 
neighborhood in San Francisco, the number of citizens in the neighborhood 
patrol has climbed to more than 400. The citizens are educated by police on 
the value of increased lighting, different lock mechanisms and are trained to 
patrol their neighborhoods. Any citizen who spots a suspicious event can then 
call the police department, using cellular phones provided free of charge the 
GTE, and alert police. These programs have been especially successful in 
Chinatown, Visitacion Valley and the Portola district. 

Earlier this year, the Board of Supervisors, led by Supervisor Kevin Shelley, 
passed an ordinance placing a ban on those junk guns known as Saturday 
Night Specials. This has resulted in a significant reduction in guns on the 
streets and that other jurisdictions, such as San Jose and Oakland, are 
following San Francisco's lead. 

In addition, the police department will expand the Mobile Assistance Program 
to keep intoxicated people off the streets. We yyjJl enforce laws that prohibit 
sleeping and excessive drinking in our parks. We are moving ahead with 


plans to relocate Central Station to a large lot at the corner of Broadway and 
Sansome streets. 

The tragedy at 101 California Street several years ago pointed out the serious 
deficiencies of our 911 system. We are right on target for implementing a 
new, state-of-art system. For the first time ever in San Francisco, the new 
800 megahertz system will allow the fire department, the police department, 
the paramedics and the Office of Emergency Services to speak over the same 
radio system. All four departments are working together to ensure that each 
departments' needs are fulfilled. This system will save lives. 

We can also decrease emergency response time by moving the city's 
paramedics from the health department to the San Francisco Fire Department, 
a proposal supported by both director of Public Health, Dr. Sandra Hernandez 
and Fire Chief Bob Demmons. This plan offers a faster and more coordinated 
response to emergency medical services. 

Chief Demmons already has planned a cross-training program for current and 
new firefighters and paramedics. Both the health and fire commissions 
unanimously approved the merger. Implementation plans are under way. 

The Sheriffs Department is undergoing one of the most complicated growth 
periods in its history. The completion of the new downtown jail has eased 
significantly the overcrowding at the county jail in San Bruno. Last Monday, 
the new intake-booking center was opened at the new jail, and the department 
is preparing to take over district station prisoner transfers and central warrant 
bureau functions from the SFPD. It also will be developing the Treasure 
Island brig proposal. 

Sheriff Michael Hennessey also is exploring alternatives to incarceration for 
eligible prisoners. He initiated a trial project of using electronic home 
detention monitoring for some pre-trial detainees, a practice previously only 
applied to sentenced prisoners. This, too, has reduced overcrowding. 

Our juvenile justice system is a mess. Rather than continuing the debate about 
just exactly what is wrong - a system ailing for nearly 50 years — I have 
decided to do something about it. I have reconvened the Criminal Justice 
Council and have asked Mimi Silbert of the Delancey Street Foundation to 
work with my office of criminal justice, with the re-energized juvenile justice 


commission and with community activists to develop a comprehensive action 
plan. Mimi's track record in fashioning Delancey Street into a national role 
model for successful rehabilitation speaks for itself. 

The TURF program, so widely maligned in the press, was a great success for 
the city ~ crime is down on Muni, as I said earlier — and for those young 
people involved. One young man, Kim Mitchell, has gone on to form his own 
locksmith business, another young man, Ollie Bryant, has secured 
employment at the youth court. Despite a recent newspaper headline referring 
to these young men as "hoodlums, this program has worked. As a result the 
new Muni Transit Assistance program will pick up where TURF left off. 

These are the kinds of unusual solutions we must seek. 

Quality of life means a terror-free, on-time ride to work on Muni. The new 
Muni contract, negotiated by my director Emilio Cruz, allows for 
reorganization, stricter work rules and greater accountability to the public. 
This along with Emilio's outstanding managerial style and attention to 
restructuring and morale will greatly facilitate dramatic improvements. 

One of the major causes of Muni delays comes from general traffic problems. 
A tnick double-parks in a bus lane, a fender-bender clogs traffic, and we have 
late Muni buses. There's no way to avoid that fact. Together, Muni and the 
Department of Parking and Traffic will develop a traffic enforcement plan 
aimed specifically at keeping traffic out of the bus lanes, period. The 
purchasing department reallocated staff resources to increase support to 
Muni's maintenance division. 

Public health director Dr. Hernandez believes, as I do, that good health and 
adequate care for all is a barometer of society. So a discussion of quality of 
life, must include greater discussion of health care — for humanitarian as well 
as economic reasons. 

An estimated 120,000 San Franciscans are uninsured — those numbers will 
grow with the advent of welfare reform — at huge cost to the city. 

At the health summit I convened in August, Dr. Sandra Hernandez outlined a 
plan for providing health care for every San Franciscan using existing city 
facilities and personnel, as well as bringing private and non-profit providers 


into the program. Redesigning the existing public and private delivery systems 
will enable to manage our health-care needs. Our goal will be achieved 
through flexible use of federal, state and local funding. 

We have seen an increase in the number of persons suffering from both 
substance abuse and mental illness, many of them roaming the streets looking 
for help. An estimated 40 percent of San Francisco's homeless population is 
believed to suffer from mental health illness. And nearly 70 percent of clients 
hospitalized for mental disorders also are substance abusers. 

Currently, these persons must navigate two separate delivery systems — one 
for mental health, the other for substance abuse. This makes no sense at all. 

Dr. Hernandez will be implementing a one-stop delivery system for those 
persons "dually diagnosed. Such a financial investment will reduce 
incarceration rates, emergency room utilization, certain crime rates and 
incidences of domestic violence. 

The costs for this program are under analysis and will be considered during 
next year's budget process, but let me emphasize one fact: research shows 
that every dollar invested in substance abuse treatment saves $7 in criminal 
justice, health care and social services costs. Those are numbers we must 
never forget. 

The department also will ensure that every child in San Francisco is 
immunized. We will expand community-based living programs as alternatives 
to institutional care for persons living with AIDS, for the elderly, for the 
handicapped. We will implement a managed care program for Medi-Cal 

Quality of life means caring for our families and youth. We learned many 
things at this month's Youth and Family summit — not the least of which was 
that our youth clearly have strong opinions. And so they should. They are the 
future of San Francisco. 

Michael Wald, director of the Department of Human Services, has 
implemented a number of new programs to protect children from abuse and 
neglect, including a one-stop family resource center in the Western Addition, 


increasing the hours of child abuse hotline, creating a community complaint 
resolution program for foster parents. 

Dr. Wald also has developed a partnership with four community agencies to 
increase the recruitment and training of adoptive parents, thereby reducing the 
number of children in foster homes. 

Quality of life means decent educational opportunities for all. 

We are making good progress in the public school system. Reading and math 
test scores have increased for the fourth consecutive year. Drop-out rates 
have declined. The number of students in the top quartile has increased. We 
have opened and/or expanded seven schools in the past four year. 

But there is much more to do. There are 64,000 students enrolled in the San 
Francisco Unified School District. Roughly 40 percent are considered 
educationally disadvantaged. 

An eighth-grader by the name of Linda Gamino sums my philosophy that we 
must look to ourselves when she says: "I believe there is a need for our 
parents to get involved in our schools and community. We cannot leave the 
job only our teachers." 

The school district has created an Office of Parent Relations to expand 
parental involvement. They will hold a conference later next week. 

But what of those San Franciscans who are note parents? They have a 
responsibility also. 

One-third of all San Francisco adults has a bachelor's degree or better — many 
of them products of our fine tertiary educational facilities, whether San 
Francisco State, Community College, UC or Stanford. 

Those of us who are better educated — parent or not — have an obligation to 
provide opportunities and direcetion for the young people who will follow us. 
We need to this for our children and for the future of our city. 

We can begin meeting this responsibility by giving our youth job-training and 
mentoring opportunities. 


Last summer's Say Yes program, a collaboration between the public and 
private sectors, resulted in 600 jobs for youths. A 16-year-old youth from 
Bayview/Hunters Point who worked as a teacher's aide at Creativity Explored 
told us": "Without Say Yes, I would be at home all day not doing anything 

We must continue and expand this program. 

I intend to start with an extensive mentoring/internship program in every 
department at City Hall. I challenge every business, every company, every 
community organization in this city to follow our lead. It costs little but time, 
and the rewards are enormous. 

I have asked my office of Children Youth and Families to partner with the 
San Francisco Unified School District, with community-based organizations 
and the local business community to construct a comprehensive, citywide 
school-to-work program. 

We will be create a youthline — a central place for youth to get infonnation on 
programs and services in the City. This infonnation will be available on the 

The entire system is in need of capital improvement. With the state-mandated 
reduction in class sizes, the need for more classrooms will grow exponentially 
as children progress up the school ladder. 

In the last four years, we have opened and/or expanded seven school sites, 
including four Beacon centers. We plan to open or expand seven more 
schools in the next three years. 

Quality of life means driving down city streets without disappearing into a 
pothole or going airborne across a dip. The Department of Public Works will 
in the next few weeks have its pothole hotline up and running. You see a 
pothole; you call the number; DPW will respond within 48 hours, with 
weekend response limited to serious hazards. 


In the next 12 months, DPW also will plant 4,000 new street trees, increase 
litter receptacles by 100 and centralize street-work permits through its 
fantastic state-of-the-art "smart-mapping" technology. 

Quality of life means having an oasis in the middle of our densely urban city. 
I'm talking about our parks. Our city jewels. We have completed the India 
Basin Shoreline park, the soccer field at Mission Dolores Park, a new 
playground in the Panhandle. We have begun construction of a new park in 
Chinatown and purchased the 2.6 acre Hawk Hill in the Inner Sunset for open 

We must do more. We must return our public open spaces to the public. 

As you walked into this building this afternoon, you can't help but have 
noticed a little project going on across the street. It is City Hall, of course, not 
Mayor Brown's "Taj Mahal." 

The City Hall restoration is the largest project in the city's history. It is 
progressing on schedule, within cost projections and so far has used a fraction 
of the monies available in the contingency funding pool established for unseen 
costs. We'll have one blow-out party when it opens New Year's Eve in 1998. 

But let me tell you something else. This is one smart building, and it's going to 
make all of your lives easier. 

Hard-wiring and fiber-optic wiring will begin in March of next year. What 
this means is that you will be able to conduct city business, whether searching 
records, filing papers, checking tax assessments, or paying bills from your 
own home, or from kiosks set up around the city, or in the building itself. 
You will be able to directly access your government through the building's 

Step out the door of our new City Hall in 1998, and you will encounter the 
newly refurbished Civic Center plaza, restored to its former Beaux Art 
elegance. It will be an esplanade worthy of our city and one that will draw 
hundreds for lunchtime picnics and evening strolls. 


When that happens, San Francisco will become the first city in America to 
successfully complete its original "City Beautiful plan," a plan every major 
city in America submitted during a national effort in 1913 to beautify the 
cities. By the way, Cleveland is nipping at our heels. We can't let that happen. 

Downtown, we will hold an international design competition for Union 
Square, selecting a design so magnificent that Union Square will become a 
must-see on every resident's and tourist's list. 

We will repair Golden Gate Park's Polo Field and clear the park of its dead 
and diseased trees. We will develop funds to implement a park traffic 
management program, perhaps shutting the park completely to traffic and 
instituting an environmentally safe, regularly scheduled shuttle service. 

Much of the parks improvements will be paid for through development of a 
merchandise line based on copyrighted images of Golden Gate Park and other 
historical landmarks. This would be similar to the "I love New York" 

Rec and park has just reallocated resources to find the $50,000 needed to 
clear 10 acres of downed trees in Golden Gate Park. Clearing will begin in a 
few weeks, and that process will return 10 new acres of open space to the 

We also need to protect our public treasures. The De Young museum needs 
extensive seismic upgrades and repairs. It simply will not continue to be safe 
for our visitors, our children and our collections. Proposition B, a $73 million 
bond measure on the November ballot correct this serious hazard. 

Quality of life also means retaining and protecting our dignity and our civil 
rights and ensuring equal opportunity. The Human Rights Commission, under 
the direction of Ed Lee, whom I have since asked to take over the Purchasing 
department, has made great progress. Mr. Lee has handed off to Vicki 
Bamba, who will continue the progress he has made. 

A backlog of more than 250 applicants for minority and women business 
enterprise programs has been significantly reduced. An expedited certification 
process has reduced the time frame from an average three months to three 
weeks for new applicants. 


The commission this year held two unprecedented public hearings. One on 
the need to curtail racist and homophobic hate speech by local radio talk- 
show hosts. A report will be filed with the FCC by the end of this year, the 
second was on the social concerns of gay, lesbian, bisexual and transgendered 
youth. Their report was presented at my youth summit two weeks ago. 


As you well know, I'm not one to hold back my thoughts, and let me say that 
my 3 1 years of public experience did not fully prepare me for some things I 
would learn as your mayor. 

I have found that our city is process-oriented, not results-Oriented. 

I have found many who are willing to engage in endless debate over decades- 
old issues, but fewer who are willing to explore unusual and creative 

I have found a cumbersome bureaucracy. A focus on minutia. A lack of 
communication among departments. An inability to share information. 

I have found that the structure of our city's government contributes to its 
dysfunction. That our system is frustrating, user-unfriendly and a serious 
impediment to the delivery of services we depend on every day. 

I have found a reluctance to change. 

I understand that change is difficult. That change is painful. That change 
threatens the comfortable existence we have carved out for ourselves. 

Believe me, I understand this. 



Let me tell you why. 

As the world becomes increasingly competitive, as technology advances 
literally overnight, as new industries spring up around us, we must reinvent 
ourselves and our way of thinking. 

As federal and state funding sources dry up and these institutions say to 
municipalities, "we can no longer help you," we must look to ourselves for 
the creative solutions and options. 

We must search for new opportunities, and we must have a structure in place 
to accommodate those opportunities. 

To attract new businesses both large and small, to retain and nurture the 
businesses that exist, to build the affordable housing we so desperately need, 
to find the solutions to the burden the new federal welfare regulations will 
place on our city, to create the job opportunities and educational opportunities 
for our youth, to make this the greatest city on earth, means we must be 
flexible, supple and open to new ideas. 


I now know the question arising in everyone's mind' 

How are you going to pay for all these ambitious programs, Mayor Brown? 

Let me start by saying that when I took office and began preparing the city's 
budget, I discovered we had a 589 million deficit. I balanced that $3.3 billion 
budget with minimal cuts to city-funded programs and left the city with a 
SI 4.6 million reserve. It is the largest reserve in recent memory. 

That's called good fiscal management. 

When I ran for mayor, I promised I would use my contacts in Washington and 
Sacramento to ensure that San Francisco received as much federal and state 


aid as possible. To date, we have received hundreds of millions of dollars 
from those sources. 

That's called working -the system. 

I said I would ask the private sector and community-based organizations to 
step up to the plate and make a contribution in a myriad of public-private 
partnerships. Those sectors have done so handsomely. 

That's called working together. 

Many of the goals and plans I have outlined already have been budgeted. 
We'll prioritize and reallocate our resources to find the funding we need. 
We've done it before. We'll do it again. 

Proposition E on the November ballot will assist us in the negotiating process. 
If passed, Prop. E will allow the city and the unions to bring all the issues to 
the table for bargaining purposes. No bargaining unit or management 
organization can hope to secure a fiscally wise contract when only half the 
issues are open to discussion. It makes no sense to do otherwise. 

As the federal and state governments increasingly withdraw from the business 
of funding municipalities, we must look more and more to ourselves for the 

And that brings me to my final point: Government refonn. 

This city and its bureaucracy were designed in the 20th century for a 20th 
century lifestyle. As we move into 21st century, our government is outdated, 
outmoded, inefficient and often incomprehensible. Our government structure 
no longer serves its purpose. 


Ask any citizen who has dealt in the last 10 years with the Planning 
Department, with Bureau of Building Inspection, with the Board of Permit 
Appeals, with the Tax Collector, with the Department of Justice, with Parking 
and Traffic if this an efficient, streamlined, user-friendly city. 

I think we all know what that citizen's answer would be. 

Is this the fault of the departments I just mentioned? Not necessarily. Rather, 
it is the fault of the system. 

When a woman from the Mission District tells me that she must fill out six 
separate forms just to get permission to add a room to her home, I know 
something is wrong. 

When a contractor in North Beach tells me that to remove an illegal kitchen 
he must first go through a series of inspections and reviews and must then pay 
a fine for having the illegal kitchen in the first place, I know something is 

When you have to stand in stand in line at three different offices to complete 
one transaction, something is terribly, terribly wrong. 

This is absolute insanity. This is government of and by absurdity. This is a 
waste of the public treasury. 

We must change and, believe me, City Hall IS changing. 

It has become crystal clear to me during my tenure that city departments don't 
talk to one another. Important information slips through the cracks, resulting 
in delays, duplication and sometimes disaster. 

We must have more cross-fertilization of city departments. 

We must have more private and public partnerships. 

We must further streamline our city bureacracy. 

I already have given several examples of our progress. We are merging the 
firefighters and the paramedics. We are creating a 91 1 system in which for 


the first time four departments will talk to one another. We are collaborating 
among departments to implement alternatives to incarceration. 

We are developing one-stop shops for small businesses, for mental health and 
substance abuse programs, for youth employment opportunities, for building 

We are increasing our public-partnerships in businesses, social services, job 
training and mentoring programs. 

We need to look no farther than the San Francisco Zoo to see an example of a 
successful public-private partnership. The zoo was privatized three years. 
Since then, attendance is up 20 percent. Donations are up 15 percent. Last 
year, 600 volunteers gave 56,000 hours of free time. 

Through this, the zoo has been able to open a new otter exhibit, a new feline 
conservancy center, a new entrance to the children's zoo, a white alligator 
exhibit and a new avian conservancy center. 

But let me give you other examples of ways in which we're putting our house 
in order. 

I am committed to making San Francisco the Number One place in America 
in which to do business. 

To ensure that we're not losing business opportunities through lack of 
communication among regulatory agencies, I have formed a Senior Economic 
Development Advisory Group. It is comprised of executive representatives 
from my departments and senior members of my staff. 

They meet regularly and are advising me on allocation of city resources for 
development proposals, using as a yardstick my action plan from the 
economic summit. 

1 am committed to maintaining a social welfare system that protects children 
and provides an adequate safety net for all vulnerable individuals in San 


I believe this can only be done through a cross-fertilization among 
government agencies, employers, community-based organizations and 
educational institutions. 

With this in mind, I have created a Welfare Reform Citizen Task Force. It is 
co-chaired by Mimi Silbert of Delancey Street, Superior Court Judge John 
Dearman, and Just Desserts owner Eliot Hoffman. They are joined by city 
department heads, community leaders and business executives. I have asked 
the task force to structure itself into eight subcommittees to address specific 
issues. This group will recommend to me ways to restructure San Francisco's 
network of social welfare and employment programs in order to meet the 
needs of those families and individuals affected by the new legislation. 

The task force will meet several hours each week over the next six months 
and have a set of preliminary recommendations by February I and a final 
report by May 1 . 

I believe San Francisco can lead the nation in developing a positive and 
progressive response to the new legislation. 

I am committed to making this a streamlined, efficient government operation. 

I have directed my budget office to conduct performance-based audits of all 
city deparatments so that the city's bureaucracy will focus on how well it is 
achieving stated goals and objectives. 

The results of this exercise will inform the FY97-98 budget process, which 
begins next month when all departments will receive their budget instructions. 

Departments will have to justify all their activities in the context of how they 
contribute to improving the city. 

Those programs that are only marginally successful will be discarded in favor 
of programs that are succeeding at what must be their primary goal: serving 
San Franciso's residents. 

We are utilizing technology in a big way. We have set up web sites in every 
department in my administration. The DPW's smart-mapping system will 
allow public works to coordinate information with parking and traffic, with 


PG&E, with Caltrans. The controller's office has implemented a new 
automated payroll system and database. 

Most city departments- can now enter and transmit purchase requisitions on 
line, and the purchasing office is now offering city bid information on the 

The Bureau of Building inspection will upgrade its computer system to allow 
for on-line editing of documents. And by the way, the Bureau of Building 
inspection will develop a single application form to replace those six forms 
that currently exist. 

The former department of the Chief Administrative Officer and the assessor's 
office and the Recorders offices will consolidate their functions, under decree 
by the new Charter Amendment. The assessor's office has received a $3 
million state grant to help achieve this goal. 

Again, Proposition E will assist us in our quest to make our government more 
efficient. Let me pose a question. Should an employee in a supervisory 
position be protected under an MOU, or should that employee, who manages 
and directs others, be subject to the merit system? It would difficult to argue 
that a mid-level manager should not be subject to a performance review. 
Proposition E would give the city that flexibility.